Many people spend decades saving money for retirement.
So once that stage of life kicks off, it’s time to start spending the money you worked hard to sock away
But sometimes, bad timing can get in the way of your retirement plans. If the stock market experiences a steep decline as soon as you retire, it can threaten the nest egg you worked hard to build and eventually put you at risk of running out of money. It’s called sequence-of-returns risk, and it can derail an otherwise solid financial strategy.
The problem with an early market crash in retirement is that if you continue tapping your IRA or 401(k), you’ll have fewer assets left in that account once the market recovers. So it’s important to know how to pivot in a situation like this. Here are three key things to do if you find yourself dealing with a stock market crash as retirement begins. 1.