Why the Stock Market Tanked, and What Investors Should Do Now

Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  January 25, 2022 My husband and I have a routine whenever the stock market is down. He'll look at his portfolio and moan, "I lost $X!" and I'll say, "You didn't lose anything if you didn't sell!" Then I tell him to ignore his account balance, he ignores my advice, and the cycle repeats itself every time the S&P 500 sneezes. Yesterday was rough: The market briefly fell into correction territory before paring its losses by the end of the day. Just remember that any loss to your portfolio is a loss on paper unless you sell out of your positions. That's when you take a financial hit. When the market makes you queasy, you may do best to stay the course (and don't peek if paper losses upset you). Yet if you're approaching retirement, you might consider trimming your stock positions, as Morningstar's Christine Benz tweeted yesterday. Best wishes,     P.S. If you got this newsletter from a friend, sign up here for email delivery to make sure you don't miss the next issue. Timely Retirement News, Insights and Advice

Why the Stock Market Is Tanking, and What Investors Should Do Now If you're concerned about inflation, consider buying some I-Bonds. READ MORE

Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation Facebook parent Meta and consulting giant KPMG are among a slew of companies ramping up their 401(k) benefits in an attempt to hire new workers and retain existing ones. READ MORE

How to Pay off Debt in Retirement Studies have linked credit card debt to physical pain. READ MORE

Reader of the Week

Please welcome our Reader of the Week! Mimi Fernandez-Smithwick, 61, is self-employed as a virtual executive assistant and bookkeeper. She shares a  home in Sparta, Georgia, with her husband, Ryan Smithwick, 54, a general contractor. The two recently returned home after traveling the country in their RV. What are you up to these days? After we sold our lake house, Ryan and I decided it was time to start traveling while we're still young and in good health. We're traveling across the country in our motorhome with our two cats, Bubba and Loki. We just enjoyed a two-month stay in Oregon and Northern California snow skiing at Mount Hood (Ryan, not me!), chasing waterfalls and going on scenic hikes, walking and driving through miles of giant redwoods and spending the holidays with my daughter and her fiancé. Last summer we rafted down the southern rim of the Grand Canyon, which was a very cool experience! We have been on and off the road since last July, but we still have so much more on our bucket lists to see. Nice! Any advice you would like to share for others about preparing for retirement? I'm working remotely and still on the fence about whether or not to officially retire at age 62 or scale up my business. It's looking like I will be semi-retired since the extra business income is a smarter way to supplement our travel expenses than dipping into the savings account. Either way, my goal is to make sure I wake up with a full calendar and a purpose! I have been preparing for my retirement since my early 30s, when I started my career in public service. I realized at an early age the value of government pensions and deferred compensation (457) plans. I learned as much as I could about financial wellness by reading, talking with trusted financial advisors, and attending seminars. (My first magazine subscription was Money back when it was only a printed edition! I read every issue cover to cover and even saved them for reference.)  My personal library is stocked full of books written on personal finance and retirement. So, my advice is do your due diligence and become self-educated. Learn the basics of budgeting, save your money, control your spending, invest wisely, and monitor your investments, rebalancing when necessary. Smart! What is your saving and investing philosophy? It's important to develop a relationship with money at every stage in your life. I budget two to three months out and assign every dollar I earn a "place" or category. A budget app (EveryDollar – Dave Ramsey) on my phone really helps to control my spending. I read and research as much as I can about how to manage money through retirement. As far as investment strategies, mine is simple. I don't dabble in anything I don't understand. Even though my net worth is considered extremely healthy for my age, I am still trying to save at least 10% to 15% of my earnings. Retirement News From Around The Web Here's Why Stocks Are on Such Shaky Ground to Start January Blame the Fed. CNBC When People Listen to Happy Songs, the Market Outperforms According to a robust analysis of Spotify data, positive listening choices were significantly correlated with stock price gains across different countries. HARVARD BUSINESS REVIEW Is Your Retirement Plan on Track? Here's how to customize a plan and keep yourself accountable. MORNINGSTAR For Solo Agers, A Roadmap for a Secure Future Create networks long before you need them. NEXT AVENUE Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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