The major U.S. market indices have been on a wild ride so far this year, which has sent some
investors into a panic over the state of their retirement funds.
Aer plunging into correction territory, the Dow Jones Industrial Average has recovered some of its losses, hovering around the 25,000 level as of midday on Friday. Earlier this year, the bluechip index breached the 26,000 threshold.
Meanwhile, stocks are running on the fumes of an extended bull market. The recent sell-o triggered fears that upward momentum could be winding down.
Although there may be no need to make adjustments to your allocations based on any wild swings in stocks, it could be a good time to check in on the state of your savings plans, one expert says.
“It really has been a great opportunity … it’s just one of those times for us just to get back to the
Fine, director of corporate retirement plans at Peak Brokerage Services and The Financial Guys, told FOX Business. “The psychology of the market is the exact opposite of human psychology when it comes to most normal things.”
Fine says his clients have come to him in droves to discuss their retirement plans based on recent market volatility and his best advice is not to make any knee-jerk decisions. However, when thinking about plans and goals, Fine says it is worthwhile to reevaluate a couple of key criterion.
The first is time: How much time do you have before you plan to retire? Those closer to retirement, for example, should have dierent allocation spreads than younger savers who can aord to assume more risk. Fine advises individuals to assess “where they are trying to get to and how aggressively they are trying to grow” those funds.