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Retiring During a Market Crash
Manage episode 337162688 series 3379690
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When you're approaching retirement, what do you do if the market suddenly drops? When it comes to financial planning, this has been the most challenging scenario by far.
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Episode Summary:
Numerous recessions have occurred throughout the past 30 years, and we’ve bounced back from every single one. Remember the dot-com era in the 1990s? There were even a few in the early 2000s with 9-11 and the housing crash of ‘08.
Then, during the Coronavirus pandemic, the stock market experienced significant declines as a result of the newly discovered uncertainty, but it bounced back within 6 months.
Although at the moment, recessions never feel temporary, when you take a step back and look at the markets’ behavior over a long period of time, you’ll see that volatility, peaks, dips, and overall long-term upward trends are all just part of the equation.
In this episode, we will talk about the different iterations of the economic crises that have occurred over the years, as well as the influence they’ve had on the general public. I’ve also included some pointers to get you through the next few months, lessons to learn, and an explanation of how to evaluate the market as you decide whether it is the right time for you to retire.
The lessons you will learn:
- We Will Recover
- Stress Testing your Portfolio
- Essential vs Non-essential Spending
- Emergency Funds
As soon as the market has reached its lowest point (and we won’t know when that is until after it’s happened), traders and investors can anticipate a robust recovery. Those who sold their investments when prices were low are statistically unlikely to buy back in until the market has recovered approximately 18%. On the other hand, those who bought low reap the rewards of those steep returns.
In this episode, you’ll also hear:
● The tragedy of the World Trade Center attacks in 2001 and its impact on the stock market
● The velocity of the spending is going to help us get through the downfalls
● Essential vs non-essential spending and what does this mean for your retirement future
Must-listen moments:
[11:36] Stress testing your portfolio and know the stock market will recover
[15:33] Asking yourself if your portfolio passes the stress test by looking at your spending
[16:49] Emergency (Adventure Fund) and what requires you to tab into the cash you have
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About Danette: https://tinyurl.com/28pg94tt/
Professional Journey- As the President and a CERTIFIED FINANCIAL PLANNER™ professional at TruNorth Wealth Management, LLC, I've found my calling in helping pre-retirees confidently navigate the crucial decision of retirement. Our team is dedicated to guiding family-oriented couples from being net savers to net spenders. We invite you to join our extended family and experience the TruNorth Wealth difference.
Founder – Wealth Advisor
TruNorth Wealth Management, LLC
1662 HWY 395 N, Suite 203, Minden, NV 89423
Connect with Danette @ https://linktr.ee/trunorthwealth
This podcast is for informational purposes only. The situations used herein do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted for your specific situation. Neither Commonwealth Financial Network nor your representative provides tax advice.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
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