Downturn Blues

As I write this, the market has rallied at the end of the week and 53-year-old golfer Greg Norman is leading the British open through three rounds.

What does a 53-year-old golfer leading a major tournament have to do with the stock market? Plenty, because I've heard many retirees or near retirees talk about how miserable life is because of the downturn in the market. Many are worried about what they can't control (the fluctuations in the market) when the focus should be on what they can control.

Focus on what you can control

For those of you who follow golf, you know 53 is not the age where you are supposed to contend for major championships. That's for the young guys. If you are over 50, Greg's story should be inspiration to you.

Do you think, it's too late to save up what you need for retirement? It isn't. Continue saving and continue working hard. Own that business you've been dreaming about starting up. Buy that piece of property at a bargain basement price. Rent it out. Work part time, do some consulting work or own your own business. Are you not wiser and better now than you were at 30? Of course you are, and this is the time to be opportunistic.

You now have the opportunity to buy the greatest companies on the planet at fire sale prices. Fundamentally, inflation is low and so are interest rates. Earnings at companies, other than banks, are solid. The price of oil can't be justified here and could come down soon. Look for opportunities and take advantage of them.

Are there good stocks to own for when oil goes down? Absolutely! How about alternative energy stocks? Are their good financials to buy? Think about smaller tech companies trading at right around their cash per share? And of course there are always alternative investment strategies to consider. Don't look at the market as a whole. You must look for specific investment strategies, and there are many to choose from.

If you find yourself hurting more by this market correction than you anticipated, make some financial changes. Start spending a little less now and start building up a rainy day fund. Figure out what you need to survive and what you will want to spend later to maintain your specific lifestyle.

Are you supporting children in their late 20s/early 30s? Inspire them to go on their own since you must take care of yourself and your financial needs. Be excellent at making midlife and mid retirement adjustments. Do not let the stock market quotes take over your life! Some goals can be put on the back burner or up on the drawing board for now as you try and live within your means. Focus on one thing at a time.

The bottom line is you can make changes now to your spending and portfolio allocation and put yourself in an offensive investing strategy. Stocks are bound to recover and in the meantime, don't let the downturn paralyze you. If you are over 50, don't let the market get you down. There is still plenty of time before retirement to be productive in both the market and in your own personal goals. In the years before retirement there are many things you can accomplish so don't get lured into the bear's den. As I write this, The Shark(Greg Norman) at age 53 leads the British open. Now that my friends, it truly inspirational.

Jonas Zamora is a Certified Financial PlannerTM professional. You may contact him at jzamora@zacks.com.