The stock market’s 10-year bull run came to a screeching halt in early 2020 when fears of the impacts of COVID-19 emerged. Since March, there has been unprecedented volatility in the stock market. While this can be unsettling to anyone, especially investors nearing retirement or in retirement, our financial advisors have strategies for managing your investments during a market downturn. During market downturns (aka bear markets), we re-balance client accounts to take advantage of the low prices. Our financial planners sell bonds and purchase stocks. This is the equivalent of buying investments when they are at lows (when they’re on sale) and selling them when they’re at highs (when you can get some good money from selling). There will most likely be gains as the market recovers, so it is important to not sell your assets and cash out otherwise you’ll lock in the losses. If you are in need of some cash from an account we would climb the pyramid starting with cashing out bonds. After that, we can move into selling corporate bonds. By doing this we release cash flow directly to you for purchases or even Required Minimum Distribution for that year. So rest assured. Even when the stock markets are not performing well, our financial advisors have plan and strategies to give you the best chance for investment success.
