Q: Today’s market is very volatile. Should I suspend my retirement contributions?
A: Today’s financial market can be scary, especially for those close to retirement who will be relying on their retirement account assets in the near future. However, there are a couple of important things to keep in mind. Don’t stop saving just because you’re worried about the market. Keep funding any 401(k) or other retirement account. Even if stocks decline you should continue funding the accounts because you don’t want to miss the gains when the market goes back up. Also, examine your portfolio to determine if you are appropriately invested for your stage of life. As you get older and closer to retirement your portfolio should increase its percentage of less risky investments such as bonds or money market accounts. This is because you have less time to recoup any losses a riskier investment, such as a stock, might incur. It’s important to review your portfolio periodically to ensure your funds will be there when you need them. And by all means, seek out professional help to keep your finances on track to achieve your goals.
Crystal Faulker is a C.P.A. with Cooney, Faulkner, and Stevens, LLC - Certified Public Accountants | Business Advisors.
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