Find ways to stay focused on your retirement goals
Thanks to 24-hour financial news channels, the Internet and the mobile devices we all seem to have these days, there is so much more news and information about the markets available to us. While you might expect that it would help us get better investment results, the opposite is true for many investors.
During times of extreme market volatility, it's important to remember that market fluctuations are normal and that staying the course may produce greater returns in the long run. As difficult as it may be, try focusing on what is within your control, like saving more. Learn more about how to survive market volatility (PDF) or Watch this video.
Navigating market volatility
Did you know, according to a recent bankrate.com survey, 66% of Americans did not touch their investment accounts, even as market volatility soared?1 Congratulations on staying the course.
It's also important to remember, this isn't the first epidemic or crisis to wreak havoc on the markets. While the below epidemics caused short-term disruptions and extreme market drops, economic growth later resumed.2
|CRISIS/EPIDEMIC||YEAR||RETURN OF IFA S&P 500 INDEX
1 YEAR FOLLOWING
|1987 Market Crash||November 1987||15.93%|
|Avian (Bird) Flu*||June 2006||20.49%|
|Lehman Bankruptcy||October 2008||-6.60%|
|H1N1 (Swine Flu)*||April 2009||38.78%|
|9/11 Terrorist Attack||September 2001||-20.61%|
|Brexit Vote Passed||June 2016||17.87%|
|2018 Market Correction||December 2018||16.06%|
*The return is the total return starting the month after the stated date of the epidemic.
Maintain your discipline and remember these principles:
- Tune out the noise from the financial news media and if you feel like you taking action in response to news events, seek out professional advice.
- Stay focused on your plan. Remember, you are investing for the long term.
- To help lessen the impact of market fluctuations, maintain a diversified portfolio that’s suitable for your retirement goals and risk tolerance.
- Take advantage of opportunities to invest when others react based on emotion; consider buying when they are selling in falling markets.
We’ll continue to be here for you, no matter what’s to come. Our commitment to you remains unwavering and we'll continue providing the support and education you need to make decisions that are right for you.
See what Nationwide Retirement Plans' President Eric Stevenson has to say, including:
- How we're here for you and will answer your questions
- Our experience in weathering market volatility
- The importance of staying the course and having an investment plan
As always, you can access your account online, or contact us with questions. We're committed to addressing your concerns. There are several ways you can connect with your account or with us:
Login to your Savings Plus account to make changes to your contributions, update your investment strategy, and more.
Contact the Savings Plus Solutions Center at (855) 616-4776 from 5 a.m. – 8 p.m. PT, Monday-Friday.
Reach out to the licensed Retirement Specialist in your area to set up an appointment.
1 Survey: Majority of Americans have cut their spending because of coronavirus concerns. http://www.bankrate.com/surveys/spending-investing-during-coronavirus/#investments. 3/31/2020
2 Market Timing: More Evidence Why It Doesn't Work - https://www.ifa.com/articles/market-timing_more_evidence_really_doesnt_work/