As a pandemic continues to affect our nation, we continue to see our economy under strain, especially with the rising unemployment rate. Seeing these dips in the marketplace end a historic bull market as early as Q1 can understandably make you concerned, especially when it comes to your retirement planning and long-term investments. After all, this has been the worst quarter the Dow Jones has seen in over 30 years. When you partner with Total Resource Financial, we can guide you through these periods of uncertainty.
To give you the best opportunity during event-driven bear markets such as what we are currently seeing, keep the following information in mind:
401(k) Rollovers
This component may be one of the most critical elements when it comes to our current economic climate and high unemployment rates. As you move on to a new position with a new company, it is encouraged that you review your options, whether it be any of the following:
- Leaving money in your former employer’s plan
- Rolling over your assets into your new employer’s plan
- Rolling over your assets into a new IRA
- Cashing out your value
While the option you choose should depend on your current situation, recognize that new IRAs can open the door to more investment opportunities. The following video provides more insight into rolling over your account:
Revisit Objectives
Despite the changes in the market, your own financial goals are probably not changing drastically. Be sure to reevaluate your timelines, risk tolerance, and current goals to see if anything has changed when it comes to your long-term financial planning. If you’re uncertain, or if COVID-19 has triggered a change that should be brought up to your adviser, TRF is available to help you adjust your plan accordingly.
Think About Your Investments
During times like these, oftentimes, people start to panic and sell off some of their investments without giving it too much thought. Historically, however, panicking and making bad decisions have caused more harm than market downturns. After all, we need to remember to act rationally, not emotionally, in these situations. Now is not the time to panic – now is the time to take a deep breath and strategize.
Remember, when the going gets tough, the tough get strategic. If you’re feeling uncertain about navigating your financial planning during this unprecedented time, the team at Total Resource Financial is available to help. To schedule a meeting with a TRF adviser, contact us today!