You have saved your whole life. You have done it to textbook efficiency and by doing so, have set yourself up for your dream retirement. Everything is on track, and you are getting excited. Then the stock market has the worst start to the year since 1970. Sound familiar?
If you are one of the millions of Americans approaching retirement or recently started it and are dealing with this major curveball, you’re probably asking yourself “what now?”. First, don’t panic. The market has ups & downs, and always will. Remember that retirement for most, spans decades, giving your funds time to participate in the market comeback. Usually, the worst thing you can do is to call it quits and cash out while it is down.
Second, understand your cash flow plan. How much were you planning to take out before? Can you still safely pull that same amount out? If not, can you adjust your spending for a year or two to avoid putting extra strain on your portfolio? Minor tweaks in distribution amounts can have large impacts.
Lastly, talk to a trusted financial advisor. If you had a major health event, wouldn’t you call your doctor? The same should be true for your finances. Having even a quick financial check-up with your advisor can help ensure you are on the right path and in a position to enjoy that dream retirement you have worked so hard for!