What to Know About Retirement During a Crisis
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With a year like the one we’ve had, people may be concerned about their retirement accounts.
What do you do if you want to retire during a crisis? Famed financial advisor Suze Orman offers advice on retirement.
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“If your employer is no longer matching contributions to your 401(k), it is ok to keep on contributing,” Orman says. “But if you are eligible to save in a Roth IRA, and you don’t have the budget to save the max in a Roth IRA and save in your traditional 401(k), then I would switch your focus to the Roth IRA for the rest of the year.”
Orman also points out that if you saw a sharp decline in the stockmarket not to fret. The stock market will likely recover, and if you are in your 50s, and you live until your 80s, that is 30 years of investment ahead of you.
Related: How to Create an Emergency Fund
“I don’t know if we’re in for more losses as the crisis plays out, but I am very confident that decades from now the stocks you own today will be worth more,” Orman adds. “That’s a reason to be patient and stay invested in stocks.”
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