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.

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Casey Smith
President, Wiser Wealth Management

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