If you are nearing retirement age, you may be especially concerned about your investments and savings in the midst of the coronavirus crisis.
Continue reading for 3 ways to ensure your retirement’s safety during a pandemic.
3 Ways to Ensure Your Retirement’s Safety During a Pandemic
1. Consider Delaying Retirement for a Few Years
Depending on your savings and how close you are to retirement age, you may want to think about readjusting your retirement age by several years. Before you do so, determine your savings goals and how long it will take you to reach them.
If your savings are still on track, there is another option to consider. You may be able to retire on time if you super-charge your investments over the next few years as the market recovers.
2. Don’t Cash Out Your Retirement Fund or Sell Off Investments
In order to ensure your retirement’s safety during a pandemic, avoid cashing out your retirement fund or selling off your investments. While it can be tempting to take these measures, during this time of financial uncertainty, it could be a costly mistake.
To start, if you were to withdraw money from a 401(k) or traditional IRA before the age of 59 and a 1/2, you will have to pay taxes on the funds and a 10% penalty fee on the amount.
What’s more, selling off your investments now, may mean missing out on potential gains when the market recovers.
3. Rethink Asset Allocation
As you approach retirement age, you may want to think about allocating cash to conservative investments like bonds rather than riskier investments such as stocks.