Not the Time to PanicPosted: March 3, 2020
After one of the worst weeks ever on the stock market, here are the top seven things you should be doing with your retirement savings:
7) If you need to feel better, look at your return over the last 10 years, not the last 10 days.
6) Keep contributing – you’re buying stocks on sale.
5) Don’t rebalance unless it is time you do that according to your preset plan.
4) Keep following your preset plan; trust your judgments when you weren’t filled with fear.
3) Don’t look at your balances every day; keep on the same review schedule you already set.
2) Remember, you will suffer more “big losses” over your lifetime; this is just part of the normal investment cycle. Over time, your gains will overcome your losses.
1) Whatever you do, don’t panic.
For some of you, this will be the first big downturn you’ve suffered in your working lifetime. These things happen. I’ve seen several major downturns/bear markets in my lifetime and the key is to keep your plan in mind. A good plan takes into account that the market will periodically suffer major downturns that last more than a few days. A good plan is like Linus’ blanket. With it, you can handle anything. Without it, you will turn green and get sick at the slightest event.