Q&A: Jamie Ohl on Market Volatility and Staying the Course in Uncertain Times
You may be wondering what the recent market volatility means for you personally, and for your retirement accounts.
The ups and downs of the market can be stressful for all of us saving for retirement, and the recent dips can even feel overwhelming – but it is important to remember that we have been here before, and we’ve managed through. Historically, every downturn has been followed by a recovery. That’s why it’s important to consider the big picture when saving for retirement.
Lincoln’s Retirement Plan Services team is committed to helping the 1.5 million plan participants we serve stay the course and focus on their long-term goals for retirement. We sat down with Jamie Ohl, president of Retirement Plan Services to get tips on how to help weather the storm.
Q: What do you tell retirement savers considering moving money out of their plans?
A: Retirement should be viewed as a marathon, not a sprint. With market downturns, savers may be tempted to move money out of plans or withdraw assets. However, it is key not to hit the panic button. It helps to understand how compound interest works in their favor as well as the potential tax implications they may face and how a withdrawal could negatively impact their bottom line. While the market may change dramatically in one day or one week, saving for retirement is done over years and decades, and should be based on a long-term strategy. For more guidance on navigating market volatility, click here.
Q: What should you do if you have questions about what’s happening in the market, and your retirement savings?
A: First, you can consult a financial professional. A trusted financial professional can help you look at your financial situation holistically, answer your tough questions and help strengthen your financial know-how. If you don’t have a financial professional, you can reach out to your plan provider. Plan providers such as Lincoln Financial offer retirement consultants who can meet with you virtually to discuss market volatility and its impact on your retirement savings. Finally, you can also access online tools designed to support you and help make the most of your retirement plan. Take advantage of the tools and calculators available on LincolnFinancial.com.
Q: As a retirement saver, what’s the most important thing to focus on during these times?
A: Beyond health, family and friends, it is important to focus on the future. It can be difficult but think long-term. While the market may change dramatically in one day or one week, saving for retirement is done over years and decades, and should be based on a long-term strategy.
While there has been a lot of bad news over the past several weeks in the financial markets, downturns are a normal part of the market cycle, and we have managed through them before. We have seen major market disruptions in the past, and ultimately, they have always been followed by a rebound.
Remember to stay the course and focus on your long-term goals.