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Financial Planning

Handling Market Volatility with Confidence

Some personnel of Fortune 500 may view investing in 2019 as relatively simple. The Standard & Poor's 500 Index (S&P) returned nearly 28% over the course of the year, with only minor fluctuations. Today, however, Fortune 500 confronts a drastically altered marketplace. From the global spread of COVID-19 and its potential wide-reaching economic impact to a historically low Treasury note and plummeting oil demand, the news seems to be filled with increasing uncertainty on a daily basis, resulting in a 13% drop in the S&P year-to-date, substantially wiping out gains from the previous 12 months.

Recent studies have shown that market volatility can have a significant impact on retirement savings for those nearing retirement age. According to a report by the National Bureau of Economic Research published in August 2021, individuals who retire during periods of high market volatility are at a greater risk of running out of money in retirement. This highlights the importance of having a well-diversified retirement portfolio that can weather market ups and downs. This article will explain how Fortune 500 executives can confidently navigate market volatility.

As an employee of Fortune 500, you may be aware that it is simple to identify patterns in the short-term ups and downs of the financial markets, and equally simple to create patterns if you so choose. Historically, however, long-term returns have been very favorable for investors who adhere to their investment strategies during periods of volatility and resist the temptation to attempt market timing. As a time-constrained employee of Fortune 500, prioritizing long-term returns could reduce the amount of time spent managing your portfolio when pursuing short-term investment strategies.

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As an employee of Fortune 500, it is normal to be apprehensive today, given the plummeting stock market and record 10-year note yields. COVID-19 may be novel, but market volatility is not. They need not be frightening in order to inspire dread. Contact one of our retirement-focused advisors today to discuss your unique circumstances.

Conclusion

Managing market volatility can be compared to driving through a winding road in the mountains. Just as a driver needs to stay focused on the road ahead, adjust speed when necessary, and avoid distractions, investors need to stay focused on their long-term investment goals, adjust their portfolio allocation when needed, and avoid the temptation to make rash decisions based on short-term market fluctuations. Just as a driver needs to trust their vehicle's safety features and their own driving skills, investors need to have confidence in their well-diversified portfolio and their ability to stay disciplined during turbulent times. By staying focused and disciplined, investors can navigate the twists and turns of market volatility and reach their destination of a secure retirement.

This material was prepared by Broadridge Investor Communication Solutions, Inc., and does not necessarily represent the views of The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

The Retirement Group is not affiliated with nor endorsed by your company. We are an independent financial advisory group that focuses on transition planning and lump sum distribution. Neither The Retirement Group or FSC Securities provide tax or legal advice. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at www.theretirementgroup.com.

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