Preparing for your retirement amid coronavirus

Coronavirus

It was another startling day on wall street from start to finish where the Dow dumped over 7% of its value with the loss of over 2,000 points.

Those losses were based on a drop in oil prices, as well as, fear of how much the COVID-19 spread will affect the global economy.

Trading at the New York stock exchange came to a halt just minutes after Monday’s opening bell. This comes after chaos from increasing worries of the coronavirus outbreaks and oil price cuts, leaving some to question what’s next for their retirement plans.

“If you’re a young person and have years to retire before your going to be using your retirement funds, you’re actually going to be buying shares at a cheaper values every single week,” said Jim Keller, Chief Financial Officer, Roland Financial.

Keller tells us those looking into retirement should have a financial plan ready and to know your upcoming finances early on.

If you’re looking into a retirement plan, there are some tips you can take to make sure your financially stable.

“The first couple of years maybe the first five or seven years of income should be in safer investments. The remaining dollars that your’re not going to touch for perhaps several or ten years, you can afford to take higher growth,” said Keller.

Kellers says the biggest piece of advice is not to panic about your losses, the market should bounce back in time.

However, part of the drop may be attributable to market correction.

“Fall here of 2019, the markets were actually over-extended. A lot of stocks were shooting up. i think this is a catalyst to bring us to more normalized prices,” said Keller.

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Pennsylvania COVID-19 Map

Source: Pennsylvania Department of Health

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