The stock market indexes have recently hit new highs. Does that mean this is the time to be more aggressive in choosing your retirement account investments?

But wait. At the same time, the Federal Reserve governors seem uncertain about calls for lowering interest rates any further because inflation isn’t coming down as quickly as hoped. So, is this instead the time to be more conservative with your investments?

Here at Servant Solutions our members ask us these aggressive vs. conservative investing questions every time there is a new report about our economy. Some regret missing the growth opportunities when the stock market is roaring. Others have their biggest regret when they see a decline in their account balance as markets fall. So, what should guide your investment strategy today?

Like most important life decisions, it all depends upon your specific circumstances. We should never make hasty decisions driven by either greed or fear. Nor should we envy others who may appear to be doing better than we are. The Scriptures instead teach us to proceed with faith, research, and prayerful discernment about our own unique situation, resources, responsibilities, and goals. But where do you begin?

Time is the first critical factor to consider. How many years do you have to save, invest, and grow your retirement nest egg? If you are in your twenties with many years of earnings and savings ahead of you, you might choose to be more aggressive. But if you are in your mid-fifties or older, a more conservative approach to help preserve past gains probably makes more sense.

Then there is risk. Accepting some additional risk in pursuit of higher long-term returns can be a good strategy—but only if you have sufficient time to recover from the inevitable dips in the economic cycle. Economic growth is never a straight line. Expansions are followed by contractions. But just how steep and how long each trend will last keeps economists, financial advisors—and investors like us—guessing.

Accounting for risk is absolutely fundamental to choosing investments; no discussion of financial returns or investment performance is meaningful without also considering the risks involved. In financial terms, risk really means uncertainty. If we want to pursue higher potential investment returns, we must accept higher uncertainty and the very real potential for lower returns—and maybe even losses in our account balance.

So, what would be your maximum regret? Missing out on growth opportunities by being too conservative? Or seeing your balance decline because you were too aggressive? Let us help you minimize those regrets with a balanced approach to your investment choices. Our menu of investment funds offers diverse options to fit every member’s needs. Contact us anytime for a financial-planning review.

At Servant Solutions, we believe retirement is not the end of your calling. It’s the next phase of your impact. We walk alongside you—not just to grow a number, but to build a foundation that enables you to continue making a Kingdom impact. Together, we’ll align your investments with your values, assess your time horizon, and pursue growth with purpose and prudence.

Jerry Fox serves as our Director of Financial Planning. He leads our financial planning initiatives as well as engaging with new/current members to meet their financial education needs.

Jerry recently retired as a business professor and teacher of financial planning at Anderson University’s Falls School of Business. Over more than forty years of service and teaching at AU, he has held the roles of Director of the Annual Fund, Director of Global Business Studies (leading student groups to study with government and business leaders in over twenty countries), interim chair of the Business Department, and Chair of the University Faculty. Jerry often says that he accepted all of these other assignments just so that he could be on campus to teach the Personal Financial Planning course each semester. He sincerely enjoys helping members find fiscal peace and clarity through our Financial Roadmap process.