Signs Point to a Change Coming in Q4

Are you biting your nails over recent headlines about the possibility of a market correction this quarter? If you have a retirement planner, give your nails a rest. We’ll explain why. 

Is there cause for concern? 

It depends on what you’re hearing. Are you worried about the Delta variant’s effect on the global economy? Or the Federal Reserve’s plan to start pulling back on their stimulus? Or the possibility of a government shutdown? All of the above? 

Individually, yes, those are all potential triggers. Taken together as a whole, it paints a grim picture. So, does that mean the team here at Golden Reserve is running around with our hair on fire? Actually, no. But traditional financial planners might be. 

What could you lose? 

If you’ve been chasing big returns or trying to ride meme stocks “to the moon,” there’s certainly a lot at stake. Even if the market doesn’t experience a precipitous drop, some investors became less bullish this summer, signaling a possible drop in optimism and less appetite for “fads.” 

But let’s say you’ve stayed out of retail trading. You’ll be fine, right? Probably not if you’re still using the same financial strategy that helped you grow your retirement nest egg. That’s because the strategy that got you to retirement was designed for growth. It counted on the market’s waves to help you reach the finish line. The problem is that virtually every wave eventually has a crash. That might be fine when you have time to ride the recovery back to recoup your gains. But when you’re in or near retirement, that may no longer be a possibility. A crash this late in the game could prove very costly. Sure, gaining 20% could be exciting. But losing 40% could be devastating.  

What should you do? 

If you’ve got a retirement planner… nothing. That’s because you’ve already done the legwork to protect against this kind of volatility. When you began working with your retirement planner, one of their first orders of business was likely to model your portfolio’s performance in the event of a downturn and shift your assets into retirement-optimized investments—specifically, ones that had the potential to grow your money safely with low risk and low fees. Your retirement planner was preparing for this possibility long before it dominated headlines.  

If you don’t have a retirement planner and are in or near retirement, now may be the time to find one. Even if you have a high risk tolerance and enjoy a gamble, don’t do it with your retirement. Plan a trip to Vegas instead. But first, give us a call.