graphic showing stock market fluctuationsWhen you’re retired and have funds in the stock market, its penchant for fluctuation can become a big cause for concern. In the initial months of the coronavirus pandemic, financial advisers and wealth managers heard from many people worried that their 401(k)s and investment retirement accounts were on the verge of losing massive value.

If your retirement savings are wrapped up in stocks, here’s what you need to know about the market’s inclination for uncertainty.

You Don’t Need to Worry About Every Downward Trend

A good stock portfolio is one that’s tailored to your risk tolerance. If you have a healthy mix of low- and high-risk investments, you should be able to weather some fluctuations in value.

On the whole, and with few exceptions, it’s best not to think of the stock market from a short-term perspective. Individual stock valuations can drop—or rise—by multiple percentage points in the course of a single day. Sometimes this brings us profit; other times, it forces us to re-evaluate or adjust existing plans.

If you’re approaching retirement age, there are some strategies you may consider to cope with changing markets.

Know Your Immediate Cash Needs

People approaching retirement age and people who have recently retired need to account for their immediate cash needs. There’s not much sense worrying about stock prices if you don’t have the cash on hand to budget for the remainder of the year.

While it may be stressful to see the value of your investments rapidly decrease, the markets have—historically—always bounced back. Instead of thinking of values from a short-term perspective, remember: no matter your age, you’re a long-term investor. Avoid knee-jerk reactions, take a break from the 24-hour news cycle, and consult an expert when you need expert guidance.

A wealth manager can help you identify the best strategies to increase your available cash while still padding your investments for future returns. You may be able to adjust your current retirement plan to diminish the market’s impact on your ability to have a worry-free, stable retirement.

Contact Us Today

If you’re worried about the stock market’s immediate impact upon your impending retirement, take action now instead of letting stress infringe upon your golden years. Send Quraishi Law & Wealth a message online to schedule your initial consultation.

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