Challenges you may face
Market volatility Investors typically spend decades saving for retirement. Systematic investing in a fluctuating market, coupled with historically rising trends, has helped many Americans accumulate sizable retirement accounts. While market ups and downs are to be expected, market volatility as you near retirement may cause concern, often in the form of anxiety and uneasiness.
Chances are most of you will have to live through at least one bear market in retirement. In fact, the average retiree will likely face a bear market every five years—that’s four or five years bear markets over a 20-30-year retirement. 1 So how do I grow my money if I am scared of losing it? By protecting your savings.
1 Source: Hartford Funds, 10 Things You Should Know About Bear Markets, 2022. Data as of 12/15/2021.
Market downturns can influence behavior S&P 500 ® Index Returns: 2017-2022 2
Imagine retiring in September 2018 and watching your retirement assets drop -19%, only to recover and grow before dropping -34%, all in the span of 18 months.
5000
4000
3000
2000
2017
2018
2019
2020
2021
2022
2 Source: ClearBridge Investments, The Anatomy of a Recession, Q2 2022 edition. Data as of March 31, 2022.
4
Made with FlippingBook - Share PDF online