Removing stock-market risks from your retirement savings

Removing stock-market risks from your retirement savings

February 26, 2020

The recent market decline over fears of the coronavirus and the impact it could have on the economy should cause investors to reconsider how much risks they want to be associated with their retirement savings.

The DOW Jones Industrial Average reached an all-time high of 29,551.42 this month on Feb 12, 2020, only to give back this year’s gains and then some by falling nearly 8% from its all-time high.

If you’re nearing retirement or in retirement now would be a good time to move some of your retirement savings that you’ve worked so hard for into instruments that have no stock- market risk at all.

You can still take advantage of a growing economy by using non-stock market alternatives for growth and accumulation or for creating a lifetime of income like a pension. If you’re nearing retirement and are concerned about your 401k, 403b, or 457 plan you can do a rollover into one of these non-stock market alternatives with built-in guarantees of income or principal.

Now is a good time to do this even if the market rebounds from here you would still be able to participate on the upside but without any of the downside risks associated with the market.