Not that anyone can guarantee anything. And not that you are wrong to keep an eye on the market and how it affects your investments. But there’s a secret that may help.
You don’t do your retirement all at once!
Of course, there may come a time that you declare an actual date when you are officially retired. And so, if the market is down on that date, you might be tempted to freak out, seeing how much less there is for you to live off of today than just a few weeks ago.
But what goes down can go up. And markets have historically always gone up. Even if it takes time. (See link below for more info and a comforting chart you can turn to as often as needed during the scariest times.)
So you don’t need the money all at once.
That money is there to last you for what we hope will be many many years to come. In up markets and down markets. And if you’ve been good about diversifying your types of investments, you can first turn to ones that are least impacted during any downturns. Or savings and other cash equivalents.
Or, if you’re very lucky to have enough interest income, that interest can shield you from having to use too much (or any) of your investment principle. At least for the time being. Even if you’re about to retire and the market tanks.
And then when the markets go up again (they always have), you can breathe a sigh of relief. Also at that point, maybe It’s a good time to reevaluate where your money is invested for an even smoother ride next time.
And now here’s that extra info & comforting chart I promised:
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