A setback is setup for a comeback

2022 was a bit of a rough year for financial markets, and it certainly had an impact on those saving and planning for retirement.

Have you ever watched your favorite football team suffer a bad, bad start to a game, only to pick up in the last quarter? Positive that the game was a total write-off before the first quarter ended, you might have been ready to turn the TV off and forget the whole thing.

But, like the team, you stuck it out and watched them come out victorious!

Well, in the least surprising analogy ever, 2022 was that football game. Shocked, I know!

According to Fidelity Investments, 401(k) balances lost an average of 23% over the year. But just like that football game, by the end of the year, balances were beginning to rise again. That’s good news.

But what if you were unlucky and lost some of that balance? How can you recover? Great question! Let’s discuss…

If you’re in a good financial position and have many years to go before retirement, consider adding during market dips. When the market is down, buying shares in quality investments means more shares in the long term.

Also consider your 401(k) contribution rate. Are you putting in the suggested savings rate of 15%? Market lows with a low savings rate will set you back further. Be sure to review your investment allocations as well – do they still meet your needs?

The biggest tip? Don’t fold under pressure. Historically the market has been full of ups and downs over the years. This is normal and expected.

Remember… even the worst-performing football team keeps playing their scheduled games. This year they might be last. Next year, they could be first – they don’t stop playing.

The takeaway: despite setbacks, stay in the game. Make adjustments and improvements where you need to. You might see a great payoff in the end.

For a complimentary 15-minute review of your strategy, reach out at (330) 836-7800 or >>>click here to schedule a time in my calendar<<<