Are you considering transferring your retirement savings from the stock market to a CD? Read this first

The stock market has always had up and down, however Last month decreased He was enough to intimidate any investor. While the market recovered, many people are still vibrating from seeing their compact wallets overnight – especially if there is a large part of their pension fund in stocks. With The economy is still fragileSome wonder if they should transfer the nest egg to low -risk assets such as Deposit certificates.

Not so quickly, experts say.

Taylor Kovar, the accredited financial plan and executive director of 11 financial. But he warns, “There are some barters.”

Here is what you need to know before making any radical moves.

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Is retirement away? Adhere to your current strategy

The fluctuations in the stock market are scary, but they are smart Investment strategy Factors in declines. The S&P 500 was historically delivered about a 10 % annual return For investors who have been keeping their money there for decades. If you have many years before retirement, you can ride waves and develop your money in the long run.

Noah Damsky, CFA, director of the director Marina Wilder is a consultant. “Retirement can last for more than 20 years, so get a very early governorate, and risk exhausting your wallet prematurely.”

It is wise to maintain some retirement savings in low -risk assets, but the amount depends on a number of factors, including your age and tolerate risks. Financial advisor or Robo Adviser It can help you create your best strategy.

What is about to retire? Transferring more money to a compressed disk may be logical

If you are close to retirement – or you are already retirement – you have less time to recover from the stock market drops. Therefore, your priority should be less in developing nest eggs and more to keep them. In this case, allocate more savings for low -income assets such as CDs and Bonds It can be a smart step. Again, the financial consultant can help you determine the best way for you.

Don’t give up to panic

Whatever the goals of your life and your investment, do not let the economic headlines scare you to make any radical changes to your retirement plan.

“For investors who were shaken by the last decline, I say this: emotional decisions do not take in response to short -term fluctuations. Return, review your schedule, and make sure that your investments are identical to your goals and carry the risks today, not what they were five years ago.” “The balanced plan usually includes both the shares and CDs, one for growth, and the other for peace of mind.”