Staying focused in times of market volatility

Staying focused in times of market volatility 

If you spend any time watching the news, you’ll eventually see a segment on how the financial markets did for the day — especially if stock indexes like the Dow or Nasdaq saw a sizable gain or drop. As someone who is saving and investing for retirement income, you have a personal stake in how markets perform. So, how can you maintain your peace of mind amid the ups and downs of a volatile investment market? Here are a few tips:

• Consider staying the course – No one really knows when the market will spike and drop — or how long volatility may last. You may be tempted to move your money into lower-risk
  investments after a market downturn. But by doing so, be aware that you may miss out on a market recovery. In other words, you risk “locking in” your losses if you shift into lower-risk
  investments after the market declines and you don’t reinvest before the market potentially gains back ground.
• Check/adjust your asset allocation – Do you have the right balance of risk and return potential in your investment mix based on your planned retirement age? In general, you probably want to shift to a more conservative mix of investments as you get closer to retirement. Why? You want to reduce the risk of the assets you’ll soon rely on for retirement income. On the other hand, if you have years or even decades to go before retirement, you can probably afford to have more risk in your portfolio. Talk to your local plan representative about how to manage risk in the run- up to your planned retirement date.
• Think long term – Saving and investing for retirement is a long-term endeavor. A short-term drop in the market and in your account value can be unsettling. But remember, your goal is to build your retirement nest egg over time. Stay focused on the basics. Consider contributing to your account and working toward your goal. No one likes to see a drop in their retirement account balance, but market volatility is an inevitable part of investing. The good news is that strategies are available to help you weather market swings. Schedule some time with your local plan representative for suggestions on how to cope with market volatility.

Investing involves risk, including possible loss of principal.
“EMPOWER” and all associated logos and product names are trademarks of Great-West Life & Annuity Insurance Company

Securities, when presented, are offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment adviser, Advised Assets Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

©2022 Empower Retirement, LLC. All rights reserved. RO2071602-0322