Economic Volatility And You

Recent economic volatility has men and women nationwide reevaluating their financial positioning. A recent article states:

"There is a major social and cultural message in the current economic collapse for the future retirees of America: Forget retirement"[1]

These are certainly interesting times indeed, but you don't have to wave goodbye to your dreams of a comfortable retirement. What you need to be mindful of is that it's all about timing and determining your time horizon. Before making any adjustments to your holdings, consider the time you have to hold each savings vehicle.

Are you:
-Making regular contributions, such as into a 401(k) or 403(b), IRA, or College Savings plan?

When you have several years before taking distributions, it makes sense to be more aggressive. However with current economic volatility, now is the time to review your plan(s) performance, make adjustments, and keep making regular contributions.

-Holding (with little or no additional contributions) for a future event?

As that event draws near, you may need to reposition your holdings. A more conservative account, or even a fixed guaranteed account, may better serve your needs.

-Drawing income from your holdings?

This is definitely NOT the time to absorb a major market "adjustment", especially for accounts that are mid-size or have small balances. Using fixed, income, or indexed accounts that are more conservative may be an option if you need to begin taking retirement income distributions. These accounts may also provide more peace of mind than growth or aggressive accounts, especially if you rely on the account to provide regular income.

If you have any questions or are interested in evaluating your accounts, please don't hesitate to contact us for a free consultation.

[1] - "Why you’ll work through your retirement" [http://today.msnbc.msn.com/id/28814777/page/2/]

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