The recent concerns from COVID-19, also known as the novel coronavirus, has the stock market reeling. That could cause panic in seniors who are living off retirement income and those who are close to retiring and seeing 401(k) values shrinking.
Most professional advice, however, begins with the caveat of not panicking. The hope is that this bear market (a drop of 20 percent of market value, which took place from mid-February to mid-March 2020).
Williamsbridge Center for Rehabilitation and Nursing would like to share three financial strategies that will hopefully give you back some confidence in your portfolio.
- Risk Tolerance
Many people may have increased their risk since the stock market has risen continuously since 2009. However, most plans are diversified in stocks and bonds. It’s not a wise time to sell with things so low, and if you are looking to change up your investment options, look into large, high-quality companies or funds. Airlines, for example, are one industry that may take a little more time to recover.
- Time
History has shown that bear markets driving by unexpected events (like the coronavirus fears) tend to recover far quicker and have fewer long-lasting effects than ones caused by economic downturns. Give your stock portfolio time to recover; event-driven bear markets tend to last around six months and recover within a year.
- Goals
Keep your long-term goals in mind. Cashing out options will likely provide fewer returns in the long run. Stock profits may be little to none this year, but it should recover. Those who are retired should always have at least 40 percent of their portfolios invested in fixed assets like bonds, Treasury securities, or cash, according to one expert.
To learn more about Williamsbridge Center for Rehabilitation and Nursing and all of the services they offer, visit http://centershealthcare.com/williamsbridge_center.
