Smart Retirement & 401(k) Moves In 2022
Our very own CEO Casey Marx provided smart retirement & 401(k) moves in 2022 tips to reporter Felicia Lawrence WTHR Indianapolis. With inflation and rising interest rates, the state of the economy may have you on edge, wondering what to do with your retirement money.
If you are closer to retirement age, you don’t have that kind of time for your 401k to rebound in the stock market; you should ask yourself this question… “Can you really afford to go down another 10-20%? If you know you can afford to go down another 10-20%, then you stay the course. If you can’t afford that, you probably shouldn’t remain where you are currently at. The likelihood of the market going up – especially straight up like it did in 2020 after all the monetary stimulus – is like zero. That’s not going to happen this time.”
“The younger person is probably going to have a much larger risk capacity, meaning they can experience some volatility, and it won’t kill them,” said Marx. “And if you were going to get into the market at this stage, you can do dollar-cost averaging. So if you really like a company, you can buy now at a $100, and if they go down to $90, it won’t matter to you because 30 years from now, they could sell for $500, and that’s a win anyway.”
It’s difficult to give blanket advice for everyone, but the best thing you can do is analyze your risk assessment. It looks different for everyone, which is why Marx recommends you get a financial advisor to help you understand which direction you should take.
Crown Haven Wealth Advisors has a limited number of free financial planning sessions available. We are happy to have the meeting with you in person in our offices in Carmel, Indiana, by Zoom or over the phone. You can schedule your complimentary appointment online or by calling 317-564-4691