Will the current COVID-19 situation impact my retirement?

Mark Finke, Financial Advisor, Managing Partner MSMF Wealth Management Cetera Financial Specialists, LLC, member FINRA/SIPC

First and foremost, we need to accept the potential fears and biases that COVID-19, extended shelter at home orders, and an economic shutdown have created in our minds. There's no question that market volatility, as well as economic news, has been unsettling. The bias that "this time is different" can emotionally and intellectually freeze you in place. After we unpack what's going on inside our heads and acknowledge the feelings of uncertainty, we then need to "think slower" and refocus our thoughts on our future lives in retirement. Focus on "managing through" the 2020 environment as opposed to "managing to" it, and you will alleviate your "head trash" and keep your eyes on the prize…your future.

1) Will the current situation will change my retirement plans for the worse?

With a well laid out "Retirement Blueprint," there is no reason to think that your strategies and plans will permanently change. There may need to be some adjustments or tweaks, based on your time to retirement, income needs, and lifestyle choices.

2) What issues should we be thinking about as we look to the future?

Your "Retirement Blueprint" should consider additional things such as a plan for meaningful work and contribution, maintaining your social and family connections, a balanced approach to leisure and travel, a healthy approach to aging, and a legacy plan for you and your family. 

3) Does our investment strategy change? Should our expectations change?

Your investment strategy for retirement is based on how soon you want to retire, what your income needs might be, and your "sleep quotient" for risk. If they haven't changed, then maybe some tweaks and adjustments might be appropriate, but short-term results shouldn't drive long-term strategy and expectations. 

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