If you’ll soon retire — or recently have — market volatility may feel especially unsettling. At this point in your life, market downturns can have an outsized impact on your financial security.
For instance, could you stay retired if the value of your portfolio dropped by 20% tomorrow and stayed there for a while? Now is a good time to stress-test your retirement income. Start by confirming how much you rely on your portfolio for income and how a market drop may affect your short-term needs.
Then consider whether you have enough in an emergency fund to help you through. Three to six months’ worth of essential expenses is a standard rule of thumb. And think about where you could adjust your spending, and if you need to reduce your exposure to riskier assets such as stocks.
A financial advisor can help you stress-test your retirement income plan, evaluate your options and stay focused on your long-term goals — even when the markets are anything but steady.
This content was provided by Edward Jones for use by Maggie Schoepski, your Edward Jones financial advisor at 507-867-1460. Member SIPC
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