I am currently maxing out the amount I can put in my employers retirement plan.
I understand that with the market down I am essentially buying shares on sale.
-M.
Dear M.,
It depends on what you mean by keep more in cash.
These are thebiggest money secrets rich people don’t tell you.
Its painful to watch money evaporate from your investment accounts.
Thats especially true when retirement is finally in sight though these days, Should I cash out?
is a question Im getting from readers of all ages.
But unless youre facing a dire necessity, I wouldnt cash out investments right now.
Your fear is that you wont be able to recoup your losses.
But until you sell, any losses youve already incurred only exist on paper.
Should you cash out now, youd guarantee that your investments will never rebound.
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People approaching retirement often worry that a crash could derail all their careful planning, and rightfully so.
But at 57, you could easily live another three or four decades.
Even after you retire, you need your money to continue earning money.
At that point, running out of money becomes a real concern.
Building up more cash savings is a great goal.
That way, you have a cushion for your retirement years.
The worst-case scenario is a prolongedbear marketthat hits once youve already retired.
If you dont have liquid savings and youre living off your investments, a downturn is a financial nightmare.
Youre forced to withdraw from depleted investments that never get the opportunity to rebound.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
But when youre preparing for retirement, you should up this target.
Ideally, youd have two or three years of savings.
You probably dont want to do significant rebalancing while the market is still down.
But you could work out a strategy to start moving your money into safer assets once the market recovers.
Keep in mind that investing is only one part of retirement planning.
A little flexibility can go a long way.
That gives your money more time to rebound.
Did you know?
More importantly, the stock market has always rebounded from its losses.
But thats precisely the opposite of what we should do.
A hands-off approach is best when things are bad.
Dont take any major actions based on the latest stock market news.
But do make it a goal to gradually save more cash while also continuing to invest.
The stock market can be a scary place to keep your money in the short term.
But in the long run, its a pretty reliable generator of wealth.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…