Anyone who remembers the stock market crash of 2007 and the recession that followed may remember the panic and devastation this caused for newly retired individuals and those about to begin retirement. Work with the retirement consultants at Resource Planning Group of Atlanta, Georgia, to find out how the coronavirus pandemic might affect your retirement nest egg.
Retirement Planning & Time
Certified financial planners are a little bit like therapists during times of stock market fluctuations, calming and soothing panicky investors. The truth is, the market always gets better — eventually. Younger people have plenty of time to wait for their investment portfolios to get back up to previous levels, whether it takes three months, six months or five years.
Retired workers, or those about to retire, do not have this luxury of time. And further, they don’t have a lot of options for dealing with the fallout either. Some may decide to delay their retirement, but those working in jobs with mandatory retirement ages such as airline pilots do not get this choice.
When you have built up a substantial nest egg for retirement, you likely have specific plans for it, such as buying a vacation home in a warm location, traveling around the world or moving to be near your grandchildren. But when your retirement account takes a big hit, this can affect your plans. When you’re in your 60s, a delay of a few years can make a significant difference.
Retirement Consulting in a Pandemic
When the coronavirus pandemic first hit, the stock market suffered some devastating losses. Although the year saw lots of ups and downs in the stock market, most people eventually saw their accounts regain the value they had lost.
Patience is the key. And even though we mentioned earlier that retired workers do not have the same flexibility to wait for a correction as younger workers do, what we’re saying here is that investors should do their best not to panic and divest because they fear the value will drop even more. Not only does this do a disservice to the investor, but like the stock market crash of 1929, if enough people follow suit, it can do serious damage to the market as well as individual companies.
Resource Planning Group of Georgia
Right now, the stock market is doing well, reflecting the promise held by vaccines, government intervention in the financial fallout suffered by businesses and private citizens, and the prospect of worldwide economic recovery.
If you have large holdings and are edging closer to retirement age, it’s critical to have a knowledgeable retirement planning consultant to help you make decisions during these uncertain times. More fluctuations are almost guaranteed, and you must be prepared for them.
Call the retirement planning experts at Resource Planning Group of Atlanta, Georgia, today, and make an appointment to protect your retirement nest egg.
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