Investing Concern: Retirement Accounts
With the stock market volatility this week (ending up, thought, thanks to yesterday’s financial sector and tech sector rallies), many people have an investing concern about their retirement accounts.
Some are worried about 401(k) and IRA investment accounts — and rightfully so. It can be unnerving to realize that your retirement savings accounts are dropping. But it is important to take a deep calming breath. What you need to remember is that, over time, the stock market comes out ahead. So Don’t Panic!
Keep your investing in retirement accounts measured
If you have a regular contribution to your retirement accounts, keep that up. Especially now, dollar-cost averaging can work for you. When the stock market is lower consider this: You can buy more shares for your money. This means that you will have more shares in your 401(k) or IRA. When the stock market stabilizes and recovers, you will see the returns.
Watch out for very weak investments in your retirement accounts
If you are really worried, look at your retirement account investments. Are there some especially weak investments that may not recover from all this fallout? If so, now, while the market is rallying, it may be a good time to shift around a bit. But if most of your retirement account investments are fundamentally solid, don’t mess with a good thing. They are likely to recover.
Planning ahead with your retirement accounts
With all the stock market volatility, your retirement accounts may not be yielding what you need to retire in the next little while. Take an honest look at your situation and decide that maybe you need to work a couple more years, or work part time. While it can be disappointing to put off your retirement, it might be best to wait until things stabilize a little bit — you know, when the stock market recovers in a meaningful way and home values start to climb again (for reverse mortgages or to sell).
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: investing concern retirement accounts, retirement accounts, investments retirement accounts, stock market rally,
401(k) IRA, retirement account investments, Don’t Panic
