A digest of news from publications around the nation about finance, investing, and retirement.
Watching the value investment accounts fall is not fun, regardless of your age. Those with time on their side, however, have some flexibility. You’ve only truly lost money if you sell investments at a loss. But if retirement is far in the future, there’s no need to sell investments today. In fact, if you haven’t touched those accounts you still hold the same number of shares you did two months ago—it’s just that the value of each share has declined. A time-tested philosophy is to simply wait out the storm. Some might look into rebalancing or taking a look at your diversification levels, but general consensus says don’t make big changes during periods of volatility.
The worldwide crisis resulting from COVID-19 is filled with unknowns. But losing an income, being unable to pay bills, or facing a sudden need for health care can turn these hazy question marks into a reality with issues that are crystal clear, even if the answers seem just as illusive. If the financial implications of the COVID-19 crisis begin to affect your finances, know what tools you have available and what steps you should take.
For the first time in state history, the Colorado Legislature has paused the legislative session. For at least two weeks, no bill will move forward. As they venture into uncharted territory, House and Senate leaders aren’t even sure about whether the constitutionally-mandated 120-day session length should include the duration of this legislative pause. They have submitted the question to the Colorado Supreme Court. Whenever they do reassemble, one thing is all but certain: Everything will be different. Priorities have changed, the budget will need to be altered due to the expected downturn in the economy, and time might be short.
Those in retirement or nearing retirement during market downturns have a different set of financial concerns than those who won’t be withdrawing from those accounts for years. Cutting back on spending, if you’re able, is one way to give your nest egg some breathing room. If nothing else, downturns remind us all about the importance of diversification and having a plan that takes into account the risk of downturns.