Having a Retirement Account Freak Out? Breathe Deep
Ok, you did it. You probably shouldn't have, but that didn't stop you. What am I talking about? You looked at your retirement account balance after the tumultuous losses that have taken place in the financial market since the beginning of March 2020.
So, I personally took a deep breath and reached out to someone who knows better than I what to do (or not to do) with these accounts, Tony "my Finance Guy" who is a financial planner. Here is what his suggestions were (other than "Don't Freak Out!):
- If you’re 5 years or more from retirement, look at this as an opportunity to buy low. If you’re adding to your retirement account regularly, then you’re buying shares on sale this month. That’s fantastic!
- Don’t panic and pull out of your positions now. Doing so will just guarantee a loss for you. Add more now, or at least, leave what you have in place. This time next year, you’ll be happy that you did.
- If you’re currently retired, and you can afford to reduce the monthly withdrawals from your retirement accounts, do so now. If you can postpone your monthly withdrawals for a month or two, even better.
Bottom line, we will get through this, possible fairly quickly. Stick to your plan!
How are you handling the changes in your retirement accounts?