volatile market advice

Planning for retirement is never a “set it and forget it” activity. There are unexpected disasters, market drops, and changing laws that invariably cause retirees to reevaluate their plans of action. Recently, market volatility and the Federal Reserve’s decision to cut interest rates may have you wondering how to respond. Here’s what to consider when it comes to low interest rates, market volatility, and your retirement.

What is Your Risk Tolerance?

If the recent coronavirus correction caused you to panic, you might want to rethink your asset allocation or investing strategy. We can help you assess your risk tolerance and see if your portfolio needs adjustments. Remember that this likely won’t be the last period of market volatility you see throughout your retirement, and it can help to plan ahead of time. While “timing the market” is a popular investing theory, it doesn’t account for market drops caused by unpredictable events like the outbreak of a disease, natural disaster, or political instability.

How Do Low Interest Rates Affect You?

Low interest rates can be great for people buying a home or taking out student loans, but what about those nearing or in retirement? When lower-risk investments like CDs and bonds offer lower returns, it can make retirement planning more complicated. The Federal Reserve recently cut interest rates. While this may help an economy struggling with the coronavirus, it may tell a more complicated story for retirees.

 Where Will Your Retirement Income Come From?

It’s important to know where your money will come from once you or your spouse stop getting a paycheck. Start by figuring out how much you will get from Social Security. Social Security can offer lifetime guaranteed income, which is why having a plan for maximizing your benefit is so important. From there, you can figure out how to turn what you’ve saved into retirement income. You may want to include other lifetime income sources in your retirement income plan, and a financial advisor can explain your options. An advisor can also help you figure out how to draw on investment returns to create a comprehensive retirement income strategy.

If you’re looking to revise your retirement plan, we can help. Market volatility, low interest rates, and the overall uncertainty that comes with planning for retirement can cause panic. But there are ways for your financial plan to respond and prepare for future market drops. We offer complimentary financial reviews so we can meet to discuss your risk tolerance, retirement income plan, and unique financial planning needs.


The commentary on this blog reflects the personal opinions, viewpoints, and analyses of BML Wealth Management’s employees providing such comments and should not be regarded as a description of advisory services provided by West Wealth Group, LLC. The views reflected in the commentary are subject to change at any time without notice. Nothing on this blog constitutes investment advice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future returns.

Investment advisory services through West Wealth Group, LLC, an SEC Registered Investment Adviser. BML Wealth Management and West Wealth Group, LLC are affiliated entities. Insurance Services are offered through BML Wealth & Insurance Services, California Insurance License #0M15550.

We do not provide tax or legal advice. All individuals are encouraged to seek guidance from qualified professionals regarding their personal situation. Any references to protection benefits or steady and reliable income streams in this guide refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products.