With a global health crisis on our hands, it's no wonder that the markets are being affected big time. Stocks have dropped globally, with American exchanges like The S&P, the Dow and the NASDAQ falling drastically. There's anxiety among all citizens of all ages, but for those who are no longer in the workforce, the stress levels are particularly high. So what does the state of the current market mean for retirees?
Keep Funds On Hand
All in all, the alarm bells you're hearing in your head are probably a more severe reaction than is needed. The main thing to ensure is that your current cash needs are covered. That means not tying up all your funds in investments, but instead leaving enough accessible to keep you comfortable for the next year or two.
The Ebbs And Flows
Beyond advising citizens to free up the money needed for the here and now, financial advisors are comforting the public by insisting that though this drop in the market may seem like a severe one, the rise and fall is a built-in aspect of our economic sphere. So if investors, including retirees, just hang in there and put their anxieties on the back burner, the market will eventually bounce back. Fluctuation is the name of the game!
And if you're approaching retirement and beginning to feel similar fears, just know that it's all about the planning. Instead of panicking when the time hits, have a plan-of-action in place well before retirement day arrives and the next phase of life starts. So whether you're retired or not, just remember to think in the long term, avoid going into panic mode, and focus on keeping yourself afloat and comfortable in the present. A strong market will return, and you'll be prepared!
* We are not professional financial advisors. This should not be taken as specific investment advice.