If you have a 401k, 403b through your employer then stay the course right now, especially if you plan to keep working the next 2-6 years. Why? Because if your employer is going to keep contributing to your plan as usual, that is free money, and you will pick up more potential value while the market is adjusting.
If you get any sort of a pay increase, bonus or anything that provides you with more money now through the end of the year leave it in savings/checking or a money market at your bank because you want the liquidity in the event of emergencies or if your employment status change. This includes money from the sale of real estate as well.
If you have money in an IRA or Mutual fund separate from your employer-based retirement take a look at your YTD values and if your accounts are up, then leave things alone until after the new year. Re-evaluate after inauguration season.
For people over 62, who have money sitting in an old IRA, 401k, 403b then it’s time to consider moving that to a non-market based safe haven like an annuity so you can guarantee your principal and create a self-directed type of pension.
Lastly, straight from the 1st Capital regular vault of advice stick to your budget! Don’t get crazy with online shopping or any holiday shopping. Liquidity is super important right now…especially if we go into any type of pandemic restrictions or lockdown…stay liquid over the next 60-90 days and do not run up your credit cards.
Most important of all…stay calm because there is no need to panic!!
For more information on 401K advice and financial tips visit
www.1stcig.com. Contact [email protected]. 312-952-8040.
Straightforward Advice for Everyday Working Folks