As we continue to evaluate the impact of the coronavirus epidemic, you might find yourself reconsidering your retirement plan. The following answers to common questions can help to point you in the right direction, but remember that this is just general information.
Should I sell investments? Generally speaking, it’s probably not necessary to rush into a selling decision at this time. Selling when assets are at a low point might trigger regret later, and we usually advise against making big decisions when emotions of fear or stress are involved.
However, rebalancing your portfolio at this time might be in order. If you need to discuss ways to reposition assets, call us for more information.
Should I purchase investments? Current low prices can create good buying opportunities in some areas. In particular, those who are five-ten years out of retirement could stand to see significant gains if the market rebounds as we hope. Consider bumping up your contribution strategy if possible, and let’s discuss your asset strategy.
Those who are closer to retirement might not want to take on extra risks, but again, this is an individual decision.
Should I postpone my retirement? Through careful consultation and evaluation of your portfolio, we can hopefully help you avoid the need to postpone your retirement. Keep in mind that this current crisis has been projected to last a few months on the short end, to about a year on the long end. No one can say for sure, but there’s currently no reason to believe that the economy won’t rebound within a reasonable time frame.
If you were just about to retire in the next few months, you might face greater concerns than someone whose target retirement date is five to ten years away. We should schedule a consultation to discuss your individual situation, so that we can help you make a decision about your retirement timing.