How to Manage Your Retirement Income During Covid-19
By Les Stephen
As we walk together down this COVID-19 path in 2020, you may feel anxious, especially if you are retired and are taking income from the money you have spent your lifetime to save. To some it may feel downright scary, especially if you are no longer working and are worried that you may outlive your money. Many factors may contribute to these feelings; Retirees, by nature, are generally older and are more at risk from Coronavirus itself, very high volatility in the Stock Market and many businesses struggling to keep afloat, very low yields paid in traditionally “low risk” investments, and the political and civil unrest and the ever-looming elections this Fall.
Now that I have painted a picture of gloom and doom, I will tell you that as a country and a people, we have been through tough times before. To that point, here are a few things you may want to consider when it comes to your retirement accounts that may help you avoid common mistakes.
Do not panic, stick to your plan. If you don’t have a plan, get one.
Many people do not have a real game plan with their retirement assets. Also, it is human nature to sometimes make rash / emotional decisions during uncertain times that could have long-term effects.
Consider reducing or stopping distributions from retirement accounts,
if at all possible, during a down market. Allowing your account to recover will, as a rule, help the account last longer. If available, you may want to utilize an alternative source of income on a temporary basis.
Guaranteed income sources can help mitigate retirement risks.
Some strategies, if appropriate, can be structured to give lifetime income regardless of market performance. These types of accounts can be complicated to be sure to contact a fully licensed financial advisor for your options.
These are just a few of many things to consider so be sure to work closely with your advisor to make sure your investments and your plan still aligns with your goals. Remember, long-term investing philosophy should not change due to short-term economic turmoil.
If you are interested in learning how to manage your retirement income in a way that is appropriate for your unique goals, reach out to a Rayhons Financial advisor today!