The events over the last few weeks remind us that no one can predict the ups and downs of the stock market. While there’s abundant information out there to reference so you can make informed decisions, there’s also a lot of conflicting advice. Some argue for “timing the market,” but there is simply no way to foresee all the periods of market volatility that may occur throughout your retirement. Sometimes market drops – like the coronavirus correction – are tied to unpredictable events like epidemics and natural disasters. No one could have foreseen the outbreak of this disease, and there’s still much uncertainty as to how far it will spread. However, it is possible to take steps to help protect yourself from market volatility ahead of time.

Markets continue to rise and fall as the coronavirus spreads around the world and as the government responds. The benchmark U.S. Treasury note fell to below 1%, which is a record low. The Federal Reserve responded to market panic by cutting interest rates twice recently, in hopes of avoiding a recession.

Significant market drops and sharp jolts can be worrisome: The state of the market at the time of your retirement is not within your control. Even if you’ve saved diligently throughout your whole working life, a market downturn around the time of your retirement could potentially have a long-term negative impact on your wealth.

This is why it’s important to consider your risk tolerance before you retire. If you felt your heart rate increase with news of recent significant market drops, then you may want to rethink your risk tolerance and retirement plan. As you find yourself at, near, or in retirement, you’ll want to know how much retirement income you’ll need and where it will come from.

Ultimately, you may want to consider how to help protect what you’ve earned and try to avoid letting emotions impact your financial decisions. Diversifying your investments, maintaining an appropriate mix of stock and bonds based on your age and risk tolerance, and having a long-term financial plan can help you feel more secure and prepared during times of market volatility.

There’s no single right approach to retirement planning in a volatile market. We can work together to help you make smart financial decisions based on your unique situation and to help prepare your retirement plan for whatever the stock market brings.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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