Should you postpone retirement in a volatile market?

Apr 5, 2022 | Federal Employee Articles, Newsletter Articles

You hear the news, you read the headlines, and the uncertainty in the market leads you to question if you need to wait for a more stable economy to retire. Should you really postpone retirement purely based on the current market? While it’s impossible to know exactly what the future holds, history can give us some insight into what to expect.

HISTORICAL VOLATILITY AROUND GEOPOLITICAL EVENTS

Though historical events may not reflect exactly what is occurring in our present day, data around the geopolitical events occurring in the past 50 years show valuable insights into what we may expect when the market is a bit unstable. The market declines that have occurred around some of the largest events usually lasted from 2 to 27 days in duration. In addition, the duration to recover was also relatively fast in most cases.

WHAT DO YOU NEED TO DO IF YOU PLAN ON RETIRING SOON?

It should be no surprise,  that the first step in retiring in a volatile market is to have a solid strategy in place. Planning ahead is essential which can help avoid making costly mistakes. If you sell investments at depressed prices in a market downturn, it creates a problem because you end up having to sell more shares to get the same amount of cash as you would have before the market was down. Overall, that can negatively affect your ability to recover when the market goes back up.

Your strategy should include a tailored mix of cash, equities, and bonds which can help you weather the inevitable storms of market volatility and help avoid costly mistakes due to timing.  It should also include a strategic withdrawal strategy, or knowing how much you can withdraw while maintaining the confidence that your money will last for many years to come.

HOW DO I SAFELY USE MY INVESTMENTS IN A MARKET DOWNTURN?

If you have any uncertainty when it comes to planning and starting your retirement process, Benchmark Financial Group can help. Talking with someone with experience in the market ups and downs can help you devise a plan that is right for you. All it takes is an initial consultation to get started. There is no cost for the initial meetings, and it can help you get clear on your goals and how you want to move forward in retirement.

READY FOR THE NEXT STEP? WE CAN HELP!

If you have any questions regarding your federal retirement, Benchmark Financial Group is here to help. We will take a closer look at your financial situation because retirement may be closer than you think!  Schedule an appointment today with Benchmark Financial Group by filling out the form online or calling David Raetz at 913-534-8256 to discuss your financial needs.  Benchmark Financial Group is happy to help you navigate your options and determine the best path to move toward your financial goals.

*Securities and Advisory Services Offered Through Client One Securities, LLC  Member FINRA/SIPC and an Investment Advisor.  Benchmark Financial Group, LLC and Client One Securities, LLC are not affiliated.

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Overland Park, KS 66210

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