Retirement Risk: Market Volatility
October 24, 2024
Halloween is just around the corner, but you never know exactly when market volatility might strike. If the economy begins playing tricks, it’s important for those nearing retirement to protect their treats.
It is never a good time for the possibility of a bear market, but the stakes are much higher for those on the brink of retirement. For decades, the entire point of saving and investing into retirement accounts was to provide for a comfortable lifestyle once leaving the workforce behind. A twentysomething just beginning their career still has half a lifetime to recover and rebuild. For someone farther down the road, a crash that severely damages savings will impact their quality of life with very few options to quickly rebuild the resources meant to fund the future.
One of the simplest strategies to deal with market volatility is to eliminate all risk by withdrawing from the markets. But a pile of liquid cash will not continue to grow in value and with inflation and future cost-of-living increases, this strategy will further dwindle purchasing power.
For many, this presents a dilemma. It is good to be wary of changes and become more conservative with investments closer to retirement, yet most people count on some amount of accrued and compounding growth from invested accounts to help fund their non-working years.
A financial professional can help determine where you stand, where you want to be, and create a comfortable amount of risk that will help protect what you know is needed while continuing to participate in the market and further build your wealth when calmer economic days return.
Please contact us today to learn how your current situation, combined with the markets, can work to form a confident financial strategy.