Market Changes
October 27, 2022
As we conclude our series on retirement concerns that you do not have to fear, it’s time to discuss a topic that none of us can control but can prepare for: changes in the stock market.
If you’re like most Americans, you likely have much of your retirement income tied up in the stock market, which can be great for growing your nest egg but can be detrimental if you happen to retire when the market is down. If there’s one thing you can count on in the stock market, it is volatility. This is why accounting for market changes should be a part of your financial strategy.
Here are some of the ways you could help protect yourself from market volatility:
Diversify Your Portfolio
“Having a portfolio with bond funds can counterbalance market volatility. At the same time, a sufficient amount of stock funds and investments in real estate and commodities can help preserve the principal and counterbalance inflation.”1
Be Disciplined About Withdrawals
“By planning your withdrawal allowance, you eliminate the need to liquidate a large sum of assets at fire-sale prices simply to pay the bills. Retirees’ mistakes often come from taking out too much of their retirement assets early on and panicking when the markets are struggling. Make sure you have a solid plan and stick with it.”1
Time Your Retirement
“While it’s true that the stock market tends to rise over the long term, investors shouldn’t take that as a guarantee that their portfolio will grow during any given period.”2
Ask for Help
Having the right financial professional on your team can make all the difference. They can help you determine the right asset allocation for you and continually monitor your portfolio on your behalf.
No one wants to lose money in the market. It’s our job to help create a financial strategy for you so you can be prepared for whatever future the stock market may hold. Contact us if you have questions or would like to get started with a retirement income plan. We look forward to helping you!