With the news of the stock market roller coaster this October, it’s easy to see why people panic and either stop contributing to retirement plans or worse yet withdraw their money. So far, thirteen times this month, the stock market has made triple digit swings, both positive and negative…making it difficult to remain calm.
However, it’s important to stick with your plan. You’re invested for the long term. You’ll be fine. Try to relax. My plan calls for throwing those monthly statements in the drawer unopened. This is how I’ve survived market volatility in the past so I know it works.
Of course, it is important to rebalance your accounts every year or two, but this is not the time. Wait until things calm down and then re-evaluate your plan, diversify, and make sure you have the cash you need in the short term while you wait for a market rebound.
I figure if Warren Buffett can lose $2,000,000,000 (that’s right, 2 billion) in 2 days and not panic, I can weather the storm even with retirement close at hand.
You’ll survive this market, and you’ll encounter many more times when you’ll want to bury you’re money in the back yard, but don’t panic! Stay the course.