Easier said than done in this environment, right? With the market down and COVID-19 alerts on high, emotions are soaring. Many investors want to act; this is a natural human response. There are indeed a couple proactive measures you may want to consider taking at this time, but they don’t necessarily include overhauling all of your retirement plan investments.
1. Examine your emergency (cash) savings.
It’s always important to have an emergency account (3-6+ months of living expenses readily available) but even more paramount during times of market and economic uncertainty. If it’s been awhile since you took pen to paper to calculate your short-term needs, now is the perfect time to do just that and prioritize funding any shortfall.
2. Reassess your long-term appetite for risk.
It’s easy to be an “aggressive” investor when the market is seeing double digit returns. Conversely, it’s quite popular to be “conservative” when the market is down. But these are circumstantial strategies. It’s important to reevaluate your long-term risk profile, regardless of market conditions, from time-to-time. There are many helpful risk questionnaires out there; we’re happy to provide one if you need it (email us at firstname.lastname@example.org).
3. Commit to your retirement savings plan.
You’ve heard us say it time and again, “stay the course.” It can feel passive but deciding to stay committed may be the most important action you take! Staying committed to a retirement plan (both contributions and investment strategy) during times of volatility can have positive long-term implications. Even including downturns, the S&P 500’s average annual return over all 10-year periods from 1937 to 2019 was 10.47%.*
4. Talk to a financial advisor.
Thinking of making a change? Talking with an advisor can be especially helpful for perspective if you’re considering a change. It is our goal to help all our retirement plan participants plot a strategy that will lead to a dignified and graceful retirement. It would be our privilege to speak with you about your plan, help alleviate concerns, or make adjustments if necessary. Please let us know how we can provide support.
5. Be safe!
This most certainly is March Madness of a different variety. As we navigate it as a nation, stay healthy, wash your hands, and help support those in need.
*Sources: Capital Group, Morningstar, Standard & Poor’s. As of 12/31/19.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.
Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.