July 1, 2021

Market Volatility and Your

Retirement Account

Three tips to keep calm, stay focused and carry on with your long-term financial goals.

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An article offering three tips to consider when navigating market volatility that shows a man and woman with their young child on the couch. The tips include: 1) Making a plan to ensure you have a diversified portfolio spread across stocks, bonds and cash, and then reviewing the plan at least once each year; 2) Focusing on the long term and not trying to predict the market or shifting your asset allocations; 3) Keeping up your contributions during periods of volatility to enable your retirement savings to grow over time. To learn more about saving for the future, contacting your local Mutual of America representative is encouraged.

Some days it may feel as if investing is like a rollercoaster ride filled with many highs and lows. So when the stock market experiences volatility—or rapid fluctuations up and down in stock prices—the good news is that having a diverse portfolio and staying invested over the long term can help your portfolio weather these uncertain times.* As you focus on safeguarding your financial future, here are a few tips to consider when navigating volatility.

  1. Make a plan.
    An important first step is to ensure you have a diversified portfolio spread across stocks (also known as equities) and bonds, and even cash equivalents. Commit to reviewing the plan at least annually to make sure your asset allocation continues to reflect your age, risk tolerance, expected retirement date and any major lifestyle shifts. This will help you to withstand ups and downs in the market in the short term, while keeping your retirement savings on track in the long term.
  2. Focus on the long term.
    While it might be tempting to shift your asset allocation to a more conservative mix as market volatility increases, nobody can predict when markets will reverse course. By trying to time the stock market to avoid potential losses, you run the risk of hurting your portfolio’s long-term performance and missing out on the chance for your savings to grow and benefit when the market recovers.
  3. Keep up your contributions.
    Reducing your regular retirement contributions during periods of volatility may also seem like a good way to protect your portfolio, but it can have the opposite effect. Not only will you save less, your earnings will not have the opportunity to compound as much over time. Maintaining consistent contributions through market ups and downs can help your retirement savings continue to grow over time.

If you have questions about your retirement savings account, or want to learn more about saving for your future, please contact your local Mutual of America representative.

*Diversification does not ensure a profit or guarantee against loss.

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The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. Consult your attorney, accountant or financial or tax adviser with regard to your individual situation.