Handling Market Volatility
While a retirement plan is viewed as a long-term savings vehicle, this recent market correction can result in the desire for retirement plan participants to assess their current asset allocation.
Here’s what they need to know.
The financial markets don’t like bad news. The current coronavirus outbreak is no exception, and many investors are tempted once more to “do something.” But, in times of volatile markets, the best move for long-term investors is, surprisingly, no move at all.
Essentially, there are only three things your employees can do to help control their retirement plans:
- How much they save
- How long they work
- How much they spend once retired
While medical professionals recommend not touching your face, retirement professionals recommend not to touch your 401(k) plan.
A retirement account is the longest term investment many people will ever make. They need to give themselves and the markets some time and before they act, that’s why they need to consider the following actions first:
- Tune out the noise
- Revisit their risk tolerance (not asset allocation)
- Control what they can (see above)
- Set realistic expectations
- Stay diversified
Ask what Alliant Retirement Consulting can do for your organization.
With more than 200 retirement plans and $7 billion under advisement, Alliant Retirement Consulting serves a broad range of clients – from start-ups to Fortune 500 companies. Alliant Retirement Consulting is wholly owned by and in strategic partnership with Alliant Insurance Services, one of the fastest growing insurance brokerages in the industry.
Advisory services offered through Alliant Retirement Services, LLC, d/b/a Alliant Retirement Consulting. Federally Registered Investment Advisors.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. Past performance does not guarantee future results. This piece is intended to be for informational purposes only.