Does market volatility have you unnerved about your retirement savings? In this video, I discuss how to remain calm and prudent as financial markets bounce up and down. During roller coaster rides in the market, the key to keeping your nest egg from flying away is to stay cool, remembering that markets have historically gained more than they’ve lost. Watch our recent video to learn more.
If you’re feeling anxious, you’re not alone. My team and I are always here to answer questions or just talk things through, especially during uncertain markets. Don’t hesitate to reach out; we’re here to help. Call (480) 247-9090 or email info@SWAfirm.com.
Transcript
Does market volatility have you worried about your retirement savings? Hi, I’m Brent Matthew, founder and CEO of Scottsdale Wealth Advisory.
Today, I’ll be sharing some tips to help you stay calm and make smart decisions regarding your retirement savings during periods of market volatility.
The first thing to do is pause and take a deep breath, then keep breathing.
Understanding Market Fluctuations
Financial markets, especially the stock market, are constantly in flux. Sometimes those ups and downs are simply more pronounced than usual. I’m not suggesting you ignore a significant downturn in the stock market. These events are worth paying close attention to.
However, over 100 years, the stock market has seen more years of gains than losses, almost 3 to 1, with the average positive return nearly double the average negative.
The numbers also reveal that panicked, rash decisions typically do more harm than good.
Avoid Emotional Decisions During Downturns
You don’t want to guess at the best times to jump out of and back into the market. When turbulence arises, trust your investment strategy and stick to it.
Having a written financial plan is one of the best ways to stay focused during volatile periods. It helps you keep sight of your long-term goals, not just today’s headlines. By reviewing your financial plan regularly with your advisor, you can see whether it continues to fit your needs and reflects any changes in the current environment.
Diversification As a Retirement Strategy
Diversification is another important tool. By spreading your savings across stocks, bonds, annuities, and other investments, you can reduce the impact of any single market movement.
Using Annuities and Cash Reserves
Along with these approaches, consider building a cash reserve and including an annuity as part of your retirement portfolio. Annuities can offer guaranteed retirement income, providing you with a steady, predictable stream of payment, regardless of what the market is doing. This is guaranteed income that can help cover your essential expenses, so you don’t have to worry about selling investments during market downturns.
Blending Investments for Stability
By blending annuities with your other assets, you can reduce your overall risk, add more stability to your retirement plan, and weather any potential market slides with greater peace of mind.
Focus on What You Can Control
Remember, you can’t control the markets, but you can control your response, your spending, your savings, and your risk level. Staying proactive in these areas helps keep your retirement on track.
You’re Not Alone; Get the Support You Need
If you’re feeling anxious, you’re not alone. My team and I are always here to answer questions or just talk things through, especially during uncertain markets. Don’t hesitate to reach out. We’re here to help. Call 480-247-9090 or email us at info@swafirm.com.
