FAQ: What should I do now that the U.S. has killed an Iranian General and tensions seem to be escalating? Is now a good time to reduce my portfolio risk?
No, you do not want to make any changes in your portfolio based on geopolitical risk, concerns, or situations. It will be a long-term negative to your portfolio and retirement investments if you were to get conservative every time there is turmoil in the middle east (this has been a problem since the days of Moses), the President Tweets something you don’t like (I assume he has tweeted a few things you don’t like in the last 4 years and the market is up more than. 50% in that time), or there is even a threat of war (in every war of the 20th century the market has started a long rally the day the war actually started).
Geopolitical news is nothing more than noise in the world of investing that should be treated as such. If you have set up your portfolio properly based on your age and risk tolerance, then the noise needs to be ignored. If the market falls and your portfolio declines in value, simply invest more and rebalance. This is the only way you can be sure your assets will keep growing and furnish you with the life you have dreamed about in retirement.