Retirement planning tips in the time of coronavirus

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Retirement planning tips in the time of coronavirus
Clients are advised to have a flexible retirement plan to handle the impact of coronavirus on the stock market and their investment portfolios, according to this Motley Fool article. They are advised to also keep some of their savings in cash and focus on their long-term prospects, according to the article. Clients should also stick to their stock allocation, as selling depreciated investments will only lock in losses, the article says.

What to do with clients who hate risk but need growth
Getting out of stocks and bonds is an option for risk-averse clients who want to protect their retirement plans from market volatility, however clients should understand that alternative investments are not risk-free, according to this article in The New York Times. For instance, clients who transfer their savings into cash will face the risk of inflation, according to the article. Younger clients are advised to stick to their asset allocation while those who are approaching retirement are advised to consider shifting more assets to bonds from stocks.

Don’t let clients look at their 401(k)s
Retirement savers who hope to weather bear market conditions are advised to avoid checking their 401(k)s and getting distracted by short-term moves, according to this article in MarketWatch. “The best way to invest for most clients is to become a buy and hold investor, buy a well-diversified portfolio that meets your needs and then stick to it for a very long time through the ups and downs of the market,” an investment strategist says.

Voices: Talking points to help clients navigate market volatility
First, prove you’re listening; then make sure they know you’re taking action to protect their portfolios.

Ways clients can recession-proof their retirement years
Seniors are advised to consider Medicare and supplemental medical insurance to mitigate the impact of recession in retirement, according to this Forbes article. They are also advised to consider working once they’ve retired to supplement their income, maximize their Social Security and pension benefits and develop a systematic withdrawal plan to generate income from their portfolio. Retirees are also advised to take calculated investment risks to grow their savings, align their expenses to their income, create a strong social network and keep abreast of retirement issues.

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Coronavirus Retirement planning Risk management 401(k) Retirement benefits Markets and indexes Stocks Portfolio management Asset allocations IRAs