Skip to main content

Here in Hanover

Sponsored Content

Navigating Volatile Markets for a Secure Retirement

May 17, 2016 04:40AM, Published by Family Features, Categories: Family Features, Family Features Lifestyle



Persistent and significant stock market swings, combined with shifting workplace structures and an outdated retirement benefit system, are profoundly impacting Americans’ ability to save and prepare for a secure retirement.

In fact, a quarter of Americans age 50 and over exhausted all of their savings during the 2008 recession, according to a recent AARP Public Policy Institute report. And, at the same time, almost one-third of older Americans said their home declined in value, meaning they could no longer count on rising home values to help fund their retirement.

In order to protect your nest egg against market volatility, experts recommend ensuring you have a balanced financial portfolio that includes conservative, low-risk products that are less impacted by stock market volatility.

“The single most important step Americans can take to mitigate risk is to diversify their portfolios,” said Jim Poolman, Executive Director of the Indexed Annuity Leadership Council. “Sitting with a financial planner and using a retirement calculator can help you determine where you are, where you want to be and what savings vehicles can help you get there.”

While there are no surefire ways to avoid the effects of stock market instability, there are some things you can do to reduce the likelihood that you will suffer the consequences in the future, and things you can do during a market downturn.

Start saving now. Many people are focused on paying down student loans and other debt, or concentrating on more immediate goals like buying a house and children’s college funds. However, the cost of putting off retirement savings adds up. Every six years you wait to start saving, the monthly amount you need to save to reach the same retirement income doubles.

Avoid putting all of your assets into one type of account. While contributing to an employer’s 401(k) is a terrific start, it’s often not enough. To build a solid retirement plan, don’t underestimate the importance of a balanced financial portfolio. Your level of risk should reflect your age and your retirement goals. For example, younger savers have more time to recover from risk than those nearing retirement. One option to provide balance to your retirement portfolio is adding a Fixed Indexed Annuity, which protects your principal and can provide a guaranteed stream of income in retirement, regardless of market ups and downs.

Create a retirement plan based on actual needs. A study by the Employee Benefit Research Institute found 39 percent of people guess how much they will need to save without actually calculating their retirement needs. Using calculators can help determine your specific retirement income needs so that you can plan accordingly. Calculating just your living costs isn’t enough – also take into account rising healthcare costs, inflation and longer lifespans.

Monitor and adjust your savings strategy. Volatility in the stock market can affect your savings, as do your current expenses and future needs. Additionally, career changes and family situations can change how you should be saving. Leading up to retirement, your last few years of savings will be different than when you were first starting out in your career. A good rule of thumb is to spend five minutes every five years revisiting your retirement plan to make sure your savings reflect your needs and adjust for market conditions.

Learn more about options for managing your retirement account at FIAinsights.org.

Photo courtesy of Getty Images

Sponsored by Indexed Annuity Leadership Council


Like what you're reading? Subscribe to Here in Hanover's free newsletter to catch every headline



Family Features Family Features Lifestyle


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/21/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Prime Rib Friday

    07/21/2017
    04:00PM — 11:00PM

    Every Friday. 12oz prime rib served with maple parsnips, grilled asparagus and a baked potato & h...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Hope and Hazard: A Comedy of Eros

    07/22/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a group exhibition curated by American artist Eric...


  • David Shrigley

    07/22/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a solo exhibition of work by British artist David ...


  • Ready. Fire! Aim.

    07/22/2017
    11:00AM — 05:00PM

    Ready. Fire! Aim. is a joint exhibition that will take place at the Hall Art Foundation in Readin...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/24/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Kids' Night!

    07/24/2017
    04:00PM — 10:00PM

    Monday is family night at the Latham House Tavern - Every Monday kids 12 & under eat for ½ off! A...


  • Woodblock Printing

    07/24/2017
    06:00PM — 09:00PM

    This basic introduction to woodcut printing will use both wood blocks and soft-cut linoleum block...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/25/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Taco Tuesday

    07/25/2017
    04:00PM — 10:00PM

    Every Tuesday is Taco night at the Latham House Tavern! Our house Tavern Tacos on special, Margar...


  • The Drowsy Chaperone

    07/25/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/25/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/26/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Hope and Hazard: A Comedy of Eros

    07/26/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a group exhibition curated by American artist Eric...


  • David Shrigley

    07/26/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a solo exhibition of work by British artist David ...


  • Ready. Fire! Aim.

    07/26/2017
    11:00AM — 05:00PM

    Ready. Fire! Aim. is a joint exhibition that will take place at the Hall Art Foundation in Readin...


  • Hanover's Farmers Market

    07/26/2017
    03:00PM — 06:00PM

    Wednesdays 3 - 6 p.m. beginning June 7 The Hanover Area Farmers Market will open on Wednesday...


  • Wing Wednesday

    07/26/2017
    04:00PM — 10:00PM

    Join us for Wing Wednesday every week. 50 Cent wings from 4pm until close! (Minimum order 6 w...


  • The Drowsy Chaperone

    07/26/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/26/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • Stoaked Trail Run

    08/05/2017
    09:00AM — 12:00PM

    The STOAKED trail race is the 6th race in the Western New Hampshire Trail Running Series! It take...


 

 


PROUDLY BROUGHT TO YOU BY THESE COMMUNITY SPONSORS


Northcape Design Build
Hanover Inn at Dartmouth
Ultimate Bath Store

Sean's Lawn N' Garden Services
Cabinetry Concepts
New London Inn & Coach House Restaurant