What Should Retirees Know About Navigating Retirement During a Bear Market?
Did you know that if you were to spend 50 years of your life investing, you could expect to live through roughly 14 bear markets? That's according to Hartford Funds, which explains that bear markets may be painful while happening but, overall, end up impacting portfolios positively the majority of the time. A bear market is declared when the closing price of a stock index drops by at least 20% from its most recent high, and while no two bear markets are exactly alike, here's what typically unfolds:If you're 40 when a bear market occurs, it may be uncomfortable, but the knowledge that you have another 25 years or so to recoup losses can reduce the pain. However, when you're retired and on a fixed income, a bear market may carry extra weight. Here, I will cover what you should know when the next bear market casts its shadow on your portfolio.Continue reading
Did you know that if you were to spend 50 years of your life investing, you could expect to live through roughly 14 bear markets? That's according to Hartford Funds, which explains that bear markets may be painful while happening but, overall, end up impacting portfolios positively the majority of the time.
A bear market is declared when the closing price of a stock index drops by at least 20% from its most recent high, and while no two bear markets are exactly alike, here's what typically unfolds:
If you're 40 when a bear market occurs, it may be uncomfortable, but the knowledge that you have another 25 years or so to recoup losses can reduce the pain. However, when you're retired and on a fixed income, a bear market may carry extra weight. Here, I will cover what you should know when the next bear market casts its shadow on your portfolio.
