Thank you for joining me for Episode 11 of my Money Wisdom Question Series, where I film answers to common financial and retirement investment questions in 2 minutes or less. The question I’m answering today is “Will my retirement recover?”
You are not alone if you’re feeling this way. So many people over the last few short months or even year so so have taken a hit in their retirement savings. People’s 401(k)’s and other savings are down. They could have been laid off for a while and they just feel like, “Oh my gosh, I’ve just gone backward by one year, two years, five years, maybe even more!”
So what I want you to do is think about what you want in retirement. How much income do you want? Do you need to do a reset?
A Ways Away from Retirement:
If you’ve got a while before retirement, historically speaking, your retirement savings will recover – at least it has in the past. Over a long period of time, the stock and bond markets have earned money, but time is on your side for doing that.
Close to Retirement:
If you’re close to retirement, that’s a challenge and you might need to do a re-do or re-project your retirement income needs. This is a reset and you will need a new retirement income analysis, which a good professional can help you with and find out where you stand.
Some of you can do this on your own, but the problem is, us humans get emotional about our own money. Hypothetically speaking, if you retire at age 65, ask yourself, “Where do I stand? How much income can I take?” A finance professional will factor in everything like pensions and Social Security, etc.
Will your retirement recover? It depends on how much time you have. It will if you have enough time. If you don’t have enough time, you might want to do a reset. Everyone should get a retirement income analysis from a professional and a fiduciary. Even if you’re really good at it on your own, a second opinion and set of eyes is always a good idea.
Thanks for joining me and I hope you found this information helpful! P.S. If you enjoyed this topic and you want to hear more, you’ll love this blog article where I talk about a similar subject.
P.P.S. Feel free to submit questions here for a chance to have them answered!