Should Retirees Get Out of The Stock Market?

It’s the time of year when most of us start getting our quarterly statements, which can be scary considering the stock market has been down recently. With this comes a common question; should retirees start moving money out of the stock market and into cash? The answer to this is no. You wouldn’t want to do this because ultimately you would never make up for the loss. A few strategies you could use to feel better about your money in the stock market would be to start building cash with your dividends. Usually, it is recommended that the dividends are reinvested, but if you are nervous about the market, there’s nothing wrong with building them into cash reserves.

Another way to think about this is that even though the stock market is down, you are likely still receiving dividends from stocks you are invested in. Ultimately, you should stay the course. When the markets rebound again, you could think about changing your risk tolerance, but until then hunker down and keep your focus on the long term.

Download our free guide: “Your Path to a Lifetime of Financial Success”

Have more questions? Contact Us

Casey Smith
President, Wiser Wealth Management

Click here to schedule a consultation with one of our financial planners.

Listen to Our Podcast:

Recent posts

  • How will a potential government shutdown affect your portfolio?
  • How to Differentiate between Marital and Non-Marital Assets
  • What is a charitable remainder trust?
By Published On: November 11, 2022

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). As a registered investment advisor, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment advisor’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.