Planning for what to do in a bear market is important when you’re in or near retirement and don’t have the luxury of time to rebuild your savings.
You may have heard that you should buy and hold though a bear market. After all, the conventional wisdom is the market always comes back. While that has been true, it often takes years. The market didn’t get back to even after the 2008 recession until 2013. After the crash of 1929 and The Great Depression, the market took twenty-five years to recover.
If you’re close to retirement, would you want to delay your retirement to regain that loss?
And if you’re retired and living off your investments, what would happen if they dropped 57% like the stocks on S&P 500 Index did in 2008? Could you cut your cost of living in half while you waited for the market to come back?
Bear markets and downward spirals are huge risks to your financial security – and could even lead to you running out of money in retirement.
That’s why if you’re retired or retiring soon, we believe a different strategy is in order for what to do in a bear market. We think that by following an invest and protect strategy, you can help safeguard your retirement from a bear market.
Watch a short webinar on our invest and protect strategy.