During periods of high market volatility, it is not uncommon to feel uncertain about the future and consider hasty financial actions to protect savings and investments. This is especially true in the case of retirement savings. This is because it is money set aside for living expenses after reaching retirement age and no longer working. However, what you do here can be the difference between a comfortable retirement and a significant loss of financial security.
Before you take any action, consider the following advice from the Kiplinger Advisor Collective’s financial experts. Here are some key strategies to help you manage your retirement savings and plan for the future in a volatile market.
Make sure your investment has a guaranteed interest rate
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“For example, consider investing in something that has a guaranteed interest rate, such as a fixed annuity. Despite market fluctuations, interest rates are not affected. It’s a low-risk option that guarantees future returns.” — Angela Ruth, Deadline
Maximize and consider your home equity
“If you’re a homeowner, don’t forget to factor your home equity into your retirement savings strategy. Your home is a lifestyle choice of where and how you want to live, but your net worth It’s a big part of the whole: pay off your mortgage debt to get the most out of your home equity, maintain your home to preserve your home equity, and live/retire/retirement depending on how you use it. Let’s make a housing estate plan.” — John Bodrozic, homezada
Understand your overall spending
“An important and often forgotten factor is how you manage your spending (i.e. what flows out of your savings besides market fluctuations). Markets may be out of your control, but Spending wisely is always an option, and as a pricing expert, I often see how companies are finding ways to get users to spend more. Recognize and save their tools to withdraw and save!” — robert ribshoe, EBITDA factor
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Stay focused and invested
“An effective strategy is to stay disciplined and focus on your long-term goals. Sometimes the most difficult aspect of investing is staying invested. It helps.” — Margherita Chen, Blue Ocean Global Wealth
Keep short-term and long-term assets separate
“When planning for retirement, it is best to isolate assets that you will depend on for the next 7 to 10 years from assets that will last longer. It means securing your income needs for 7-10 years with , secure, high-quality, short-term fixed income, 7-10 years to recover when things inevitably get tougher. It is reassuring to know that it will take.” — Dennis McNamara, wHealth Advisor
Diversify your portfolio
“In a nutshell, diversify. Move beyond the traditional mix of stocks and bonds to take advantage of more accessible alternatives. It helps mitigate the impact of volatility on the market.” — Tore Steen, Cloud Street Co., Ltd.
leave everything alone
“Unless you need money in the next year or two, the best thing to do when markets are volatile is to do nothing. (even professionals) have been shown to perform worse than buy-and-hold investors who regularly contribute to diversified portfolios.If you want to buy or sell individual stocks, use a robo-advisor. please.” — Andrew Schrage, Money Crashers LLC
The information provided here is not investment, tax or financial advice. For advice regarding your specific situation, you should consult a qualified professional.