Worried about global and domestic events and your retirement?

When world or domestic events — like political conflicts or instability — make headlines, it’s natural to worry about your retirement savings. Market drops during these times are common, but historically they've also been temporary. A long-term plan that already accounts for ups and downs can help you stay on track.

Key things to keep in mind:

• Short-term market drops are a normal part of investing.
• Reacting too quickly can lock in losses and make it harder to recover.

Your action plan when markets are uncertain

Here are practical steps to keep your plan on track:

1. Start with My Income & Retirement Planner®. Log in to review your current Chance of Success score.
   • Know that your score already factors in potential market drops.
   • Try adjusting your contributions, retirement age or investment mix and see how those changes could affect your score.
2. Limit the noise. Check your retirement and other financial accounts periodically, not after every big headline.
3. Stick with your long-term strategy. Staying invested helps your savings grow; selling during a dip can lock in losses and cause you to miss the rebound.¹
4. Continue contributions. Regular contributions help average out your investment costs and can buy more shares when prices are lower.
5. Review your investment mix. Make sure your mix of stocks and bonds still fits your goals, risk comfort and time until retirement; consider rebalancing if it doesn’t.
6. Build a buffer if you’re nearing or in retirement. If you’re nearing retirement, keep some money in liquid accounts so you don’t have to sell investments during a downturn.

News events can affect the markets but they don’t have to shake your confidence. By focusing on what you can control, using the tools available and sticking to your long-term plan, you’ll be better prepared to ride out volatility and keep your retirement goals on track.

Why you should take the long view

Current events can cause quick market reactions, but those moves often follow familiar patterns. History shows that markets tend to recover over time, even after periods of heightened uncertainty.

• News headlines can potentially boost volatility. Markets often react more to the fear of what might happen than to actual events, which can lead to big price swings.
• Quick drops and rebounds are common. Stock prices may fall a few percent. Historically, though, those losses are recovered within weeks or months.
• Flight to “safety.” Some investors might move money into investments they see as safer, like government bonds, which can cause short-term price changes.
• Different sectors, different results. Depending on the situation, some areas of the market may rise while others fall more sharply.

Over the long term, markets have tended to grow despite short-term turbulence. Remembering these patterns can help you stay focused on your long-term goals.