Coronavirus Cash Crisis: Should I Alter My Retirement Accounts?

SMS
Coronavirus Cash Crisis: Should I Alter My Retirement Accounts?
The stock market took a big hit during the coronavirus pandemic. We asked experts if people should make changes to their retirement accounts.
SHOW TRANSCRIPT

Coronavirus Cash Crisis: Since stock market dropped, should I make any changes to my retirement accounts?

"The short-term volatility of the market really isn't as important as their long-term investment strategy. If their long-term investment strategy includes regular contributions to a 401(k), that's great, continue doing it," said Stefanie O'Connell Rodriguez, a personal finance author.

"It's extremely challenging trying to time the top of a market and trying to time the bottom of a market. So what we always tell clients, our individual investors, is stick with your plan. Make sure always, no matter where we are in the market cycle, that those retirement accounts are experiencing enough growth or enough risk, because risk and return are related to grow that value over time," said Andrew Smith, the chief investment officer for Delos Capital Advisors.

"Anybody who has money invested in the stock market, whether it is you have investments in your retirement account, a 401(k) or an IRA — please don't pull your money out. Please don't sell, especially if you're looking, if you're a millennial like myself and you're potentially decades away from retirement. This is not a time to be panicking and pulling your money out," said Erin Lowry, author of Broke Millennial.