The end of the summer certainly wasn’t dull, as overseas market fluctuations impacted US markets and had people panicking. Beyond worrying about short-term investments, you may be one of the many people who is wondering if you need to dramatically overhaul your retirement plans. We understand, and we’re here to help. Here are three things to keep in mind during market volatility:
1) Stay Calm
This may seem counterintuitive, and maybe even impossible, but resist the temptation to panic and start moving your retirement money around during volatile times. In fact, sometimes the smartest move is to sit back, watch, and see what develops.
Remember that changes in the market don’t impact regulations and rules about retirement plan distributions and remember that changing the age at which you begin withdrawing your retirement savings will have long-term consequences. A moment of panic might not just impact your short-term future, it might impact your long-term goals. Staying calm will help you asses what steps you need to take based upon what’s actually happening.
2) Avoid change for the sake of change but don’t be afraid to change if you need to.
We know, this is really two tips, but they go hand-in-hand. A common next step after panic is to take action — and it’s usually sudden and non-strategic. Another temptation is to “stay the course” and not act at all, because you fear more change. Don’t be tempted to make a change in your retirement plans just because the market is changing or because you’re worried about what volatility means for your future. In the same vein, if the reality is that fluctuations really are impacting your long-term goals, you need to be prepared to take the necessary steps to correct your course.
The first step is to assess where you are relative to your goals. This piece offers a really simple way to assess if you actually need to change or if you will be ok to proceed as you have been. The answer will be different based upon your age, your goals, and what you have done to save for retirement so far. We also like this piece because it makes recommendations about what to do if you’ve not even begun retirement planning.
Whatever situation you find yourself in, there will be steps you can take if you need to — and reassurances that not doing anything may be exactly in line with your long-term goals.
3) Use your Resources
Let’s face it — you’re busy running your business and don’t have time to suddenly become a financial or retirement planning expert. And that’s ok. You have a team of people who are here to help you navigate uncertainty and volatility, and Robin S. Weingast & Associates is part of that equation. We know it can be overwhelming to figure out how to balance your business goals with your retirement planning, and that market fluctuations only add to the challenge. Our number one goal is to make sure that you have retirement peace of mind, and we’re here to do whatever we can to help you achieve that.
If recent events have you concerned, now is the time to contact us. We’re here to make sure you feel confident and satisfied with your plans for the future. Contact us today to see how we can help.