San Diego Gas & Electric Employees: Do NOT Put All of Your Eggs in One Basket

“Don’t put all your eggs in one basket”.

As an employee of San Diego Gas & Electric, you've probably been reading news articles about the recent market volatility. Despite the fact that this is nothing new, it can be challenging to observe your account values fluctuate.

According to a study conducted by Fidelity Investments, market volatility can have a significant impact on the retirement savings of those who are near or already in retirement. The study found that retirees who experienced a market downturn during the first five years of their retirement had a 50% chance of running out of money if they continued to withdraw the same amount annually from their retirement accounts. This highlights the importance of having a well-diversified portfolio and a plan in place to adjust withdrawals during times of market volatility to help ensure retirement savings last.

For San Diego Gas & Electric employees who are also investors, we find that maintaining a long-term perspective helps us maintain a grounded perspective. We are aware that the market rises more frequently than it falls and that short-term price fluctuations indicate a robust market of buyers and sellers.

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We maintain a diversified portfolio to potentially reduce the sensitivity of your accounts to significant market movements and to provide the opportunity to participate in any market recovery. Keep in mind, however, that a diversified portfolio is merely a method for mitigating investment risk; it does not prevent investment loss. Let us assist you in preparing for a joyful and prosperous retirement from your company.

In conclusion, investing in the stock market is like navigating through a stormy sea - there will be times when the waves are choppy, and it may be tempting to jump ship. But just like a skilled sailor, a well-prepared investor can weather the storm by having a diversified portfolio, a long-term perspective, and a plan in place to adjust course during times of volatility. By staying the course and avoiding knee-jerk reactions to short-term fluctuations, retirees can reach their financial destination and enjoy a smooth sailing retirement.