Market Volatility

Do you feel like your on a rollercoaster? Stock markets have been experiencing volatility in recent weeks as investors worry about the economic effects of the acute respiratory illness caused by the new coronavirus, COVID-19.

Warnings of reductions in quarterly sales forecasts from companies like Apple and Walmart combined with forecasters predicting reduced growth in the first quarter have already had an impact on the markets.

While no one can predict when volatility will strike, it is eventually inevitable.

Between 1926 and 2010, there were higher odds of a negative year for the S&P 500 after a three-year period of strong performance. A diversified investment portfolio can reduce the overall effect of market shocks, but smart planning can help protect your life savings and assets from a volatile and unpredictable market. Volatility can have a bigger impact in early rather than middle or late retirement, so it is important to have strategies in place before this sensitive time frame.

People naturally believe that they are unlikely to experience a negative event as compared with someone else.

Unfortunately, this optimism bias can prevent us from taking action to protect ourselves from the very real dangers of volatility, particularly in financial planning and retirement. Hedging with certain types of tools can eliminate the need for extreme measures to recover from a serious market dip like delaying retirement, reducing retirement expenses, or working part time. While the primary purpose of life insurance is the death benefit, it is an incredibly versatile product that can serve as a cushion to help prepare for the unexpected. Fixed index annuities do not directly participate in any financial markets, and can provide a conservative solution with reasonable growth potential.

The market is unpredictable. However, incorporating appropriate safe money moves during specific points in the retirement process can protect you during economic upheaval.

Contact us at 856-203-6911 or attend one of our workshops to see how we can help you keep your money safe from stock market volatility!

Leave a Reply

Your email address will not be published. Required fields are marked *