How to build savings while shielding them from inflation and market downturns

(CNN) — Few things unsettle everyday investors more than falling markets and inflation steadily eroding buying power.

Certified financial planner Douglas Boneparth shares practical guidance for calming those worries with a sensible, long-range investing approach.

A reader from Maryland asks: How do I grow the money I have and hedge against inflation and the next market correction?

DOUG: Two concerns make investors anxious about the future: Inflation reducing purchasing power and a market correction quickly shrinking a portfolio. They may seem like separate risks, but a well-built investment plan can help address both.

Begin with inflation. Historically, one of the strongest long-term defenses against it has been owning assets that increase in value faster than prices rise. In practice, that usually means staying invested in stocks, which have outpaced inflation over long stretches more reliably than most other assets. Real estate and commodities can also offer some protection, though each comes with its own risks and complications.

Market corrections are the next issue. They are a normal part of investing. They occur regularly, feel awful in the moment, and have historically been followed by recoveries. The best protection is not trying to guess when to get out. That approach rarely works. Instead, it is better to have a diversified portfolio that fits your time horizon and risk tolerance, so you are not forced to sell when prices fall.

Ultimately, both problems lead to the same answer: a diversified, long-term strategy that you can stick with even when conditions are uncomfortable. Investors who are hurt most during corrections are often the ones who panic. Those who stay invested — and continue contributing during downturns — are usually better positioned over time.

If you do not already work with a financial advisor, now may be a good time to think about it. Building a plan that balances growth and protection depends on your timeline, your income and how you react when the market drops sharply. Those are important conversations to have with someone who can help you create a plan and remain committed to it.

Tip of the week: Know what your enough is

When deciding how much to save and how to invest, the best answers depend on your needs, preferences, temperament and timeline.

It is still wise for most people to contribute at least enough to a 401(k) to receive the full company match, and ideally more. But the size of your own nest egg should be based on personal factors such as when you plan to retire, whether you will have a pension and how much you expect to spend.

So instead of chasing some vague idea of the “best,” focus on what “enough” means for you and aim for that.

And if you already find life complicated enough, you do not need to immerse yourself in every market detail or every investing strategy to reach your goals. In fact, a simpler approach may be enough, especially if you stick with a few low-cost index funds that track the market over time.