Market crashes every seven to 10 years, whatever the reason, have affected many Americans’ retirement accounts.
A stock market driven economic downturn or having to withdraw funds to help out with day-to-day expenses means many account holders are wondering: Are there some smart money moves they can make to put their retirement savings back on solid ground.
First, assess the situation
The first thing that should be done is to take a close look at where your accounts stand and where you want to be in order to achieve your retirement goals.
One thing that may be helpful is to consult with an expert financial planning advisor. An advisor can perform a retirement analysis and help craft a plan to press the reset button on all retirement investments.
Plan, plan, plan
After consulting a retirement advisors a new monthly plan can be put in motion. Adding a little bit extra each month on top of the regular contribution will build up over time.
These small changes can help get your retirement investments back on track.
Financial advisors recommend that investors try to repay any amounts that have been withdrawn as soon as possible.
Advisors recommend consulting with a tax preparer or accountant to confirm that any taxes due have been filed correctly.
An income hit can take many forms — loss of work, businesses, or investment income. The key to saving and investing more is spending less. Only by spending less and investing more can you make retirement investments grow steadily.
Investors over 50 should consult a financial advisor to find out about changes in annual contribution limits for several types of retirement accounts. There are “catch up” contributions to be made that can supercharge your retirement plan if made in a timely fashion.
Where’s the money?
After taking a step back and assessing the situation, investors should look at where their assets are allocated.
Advisors recommend revisiting investment portfolios and making sure that fund allocation is still appropriate for the time until retirement, tolerance of short or long-term risk, and goals.