Broker Check

Committed Investing Even During Crises

March 20, 2020

We know the headlines regarding COVID-19 are overwhelming. Its impact on the market might be concerning, and as we all navigate the uncertain months ahead, rest assured that your health and wellbeing are our top priority – today and in the long term. That’s why we encourage you to remain committed to your retirement goals despite market volatility – because times of insecurity shouldn’t be dealt with by compromising future stability. What does “commitment” look like during a crisis?

Evaluate.You might be tempted to sell off stock or withdraw money from your retirement accounts, but these actions can have consequences and should be used as last resorts. Trying to “time the market” is nothing more than guessing where market bottoms and recoveries will occur. Additionally, early distributions from retirement accounts are accompanied by significant taxes and penalties – reducing the cash in hand from your original investment. See example:

Keep building. Continue to contribute to your retirement accounts even when the market drops. Wise investing is based on long-term goals and a corresponding long-term plan. Sticking to that plan takes discipline, but it’s the best way to make steady progress toward the future you want. Automatic contributions from your paycheck can make saving during tough times a little easier to swallow.

Monitor your accounts. Revisit your portfolio often, making sure feel comfortable with the as- set allocation, level of risk and frequency of rebalancing. Ask yourself, “Do these investments still make sense?” and “Do I have too much risk or too little return for my age?”

We can’t control the timing of the coronavirus, but we can help you stay focused on being ready when it’s time to retire. At MRK Financial Solutions, we’ll continue to monitor the mar- ket, economy and COVID-19 developments closely, and we remain poised to serve you in any situation. Please call us if you have any questions or concerns.

*Hypothetical example by AB Global for illustration purposes only. This example assumes the account holder has an account balance of $44,170, is in the 25% tax bracket, and must pay a 10% penalty for early withdrawal before the age of 59-1/2.