Retirement Planning during Coronavirus market volatility
So, retirement just got pushed out another 5-7 years. At least, that is how it feels for those of us smack in the middle of the “Slam-wich Generation.” Those of us supposedly in our peak earning years, being pulled in 11 different directions, and a whole lot closer to retirement age, at least theoretically, than we were during the last major market downturns. And for those in younger generations, retirement often feels like a financial impossibility. A unicorn, out of the reach of real people.
What to do?
Well for starters, do as I say, and not as I do.
Sigh.
Do NOT obsessively check your 401k. This way madness lies.
Trust me.
Instead, let’s focus on what we can control. And even in the wake of ALL this, there are assuredly things we can control. We can learn more about what options exist, and why one or several might help us accomplish our retirement goals. We can rely on a steady savings strategy and thoughtful asset allocation to see us through this current crisis, and keep us moving forward toward our retirement goals. This doesn’t mean we may not make some tweaks, but we want to tweak based on actionable information, not emotion. Tweak, not attempt timing the markets with all-in or all-out decisions. I can give you blinding statistics on how badly that turns out for those who attempt it. At this point, some of you may be thinking: “uuuuuum, I don’t have a retirement plan, so this doesn’t really apply to me.
Yes, it does. Because not having a plan does not absolve you from needing a plan.
So, let’s look at some common roadblocks to retirement planning:
I don’t know a 401k from a foreign quay
IRA, Roth IRA, Rollover IRA all the acronyms are making I-RAte
I don’t have enough, anyway.
I can’t find the dollars to get started.
It is too late, I am already 35, 45, 55…
That costs money.
I don’t trust the markets, brokers, bankers or anybody calling themselves a “financial advisor” or “financial coach”
That last one stings a bit, given my avocation, but I understand it, and I am here to help dispel it. As with every other relationship in our lives, it all hinges on finding the right person. Invest in yourself with a learning plan about all things retirement, or just the pieces you find most interesting, and let’s get to work. But, if I am not the right person to help you understand your retirement options: no harm, no foul. Don’t let that stop you!! Keep searching until you find someone who fits the bill. It is too important, and more complicated every day, to try and go it alone. In my resources page, I share links designed to offer objective help in finding the right professionals. In addition, I encourage everyone to visit this link, offering suggested questions I encourage you to ask each and every one of them, to help you determine a good fit.
Lastly, one of the things I am learning from this surreal Coronavirus experience: going it alone is hard. We really are better, together. Be well, and take good care! Our health is one of our most precious resources, along with our time. Those two are finite. Everything else can be managed, creatively rearranged. Let us help you learn how to manage the rest, so you can focus on your most precious resources.
