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Older Americans should consider riding out the market 2010-05-26 After watching their nest eggs take a hit, or worse, get completely wiped out, many older Americans may be ready to throw in the towel and withdraw their savings from the stock market in favor of a safer alternative. However, financial advisors say this may not be the best move to grow their retirement income, according to U.S. News and World Report. Withdrawing funds during a decline in share values or an increase in volatility may result in a loss of current compounding and future gains when the market turns around, the magazine reports. Depending in the investment, older adults may also be charged penalties for early withdrawal, the magazine added. Skittish investors may ease their fears by changing up their investments to include safer vehicles such as bonds, suggests U.S. News and World Report. Diversification will prevent retirees from gambling the entirety of their nest egg on one particular investment, reducing the likelihood of a dramatic loss to inflation or volatility. Retirees should never make drastic decisions when it comes to retirement planning. More conservative savers can implement a number of strategies that will have a profound effect on their future income, such as strict budgeting and taking advantage of catch-up contributions.  |
