The recent market volatility surrounding the Coronavirus may have you concerned, especially if you’re approaching or already in retirement. Feelings of uncertainty, anxiety, and uneasiness are all common during any scary and volatile market. These feelings are normal and sometimes it can be beneficial to take a step back and look at the big picture. We can’t predict the markets, so acting with haste and making emotional decisions can potentially negatively impact your retirement outlook. Make sure to remind yourself of the reasons you’re planning and investing in the first place. Focusing on your priorities and unique goals can help you put your market exposure and risk tolerance into perspective. Now that you’ve done this, you can focus your time and efforts on finding happiness in retirement.
As you find yourself at, near or in retirement, you’ll want to know how much retirement income you’ll need, and where it’ll come from. Additionally, you’ll want to consider having a diversified investment strategy based on your personal goals and risk tolerance level. With significant market drops and sharp jolts, it can be nerve-wracking. We get that. But, it’s important to try and stay calm and not let your emotions impact your financial decisions. This is just one reason why having a comprehensive retirement strategy to help you survive volatile markets can be a good idea.
One of the best ways to help achieve your retirement goals is to diversify and monitor your future income. The risk management technique of mixing a wide variety of investments within a portfolio is called diversification. Generally speaking, the purpose of a portfolio constructed in this manner is to give you a mix or a variety of investments to help get as much of the upside as possible, without putting too much at risk. Diversifying your investments, maintaining an appropriate mix of stock and bonds based on your age and risk tolerance, and having a long-term plan for your retirement can potentially help you feel more secure and prepared during times of market volatility.
Ultimately, the right approach to retirement planning in a volatile market depends on you and your unique situation. That’s why it’s important to work with a trusted financial professional who takes into account your particular needs, goals and concerns when creating your custom, comprehensive retirement plan. At Moore’s Wealth Management, we’ll work together to help you make smart and sound financial decisions so that your retirement is prepared for whatever the stock market brings. Click here to schedule your complimentary, no obligation review and we can help answer your retirement planning questions, while making sure you’re on-track for a successful life in retirement.