Rather than panicking and making drastic moves, revisit your goals with your financial advisor and make sure that your asset allocation reflects your longer-term goals.
“You still want to save for retirement on a consistent basis, but take a pulse,” said Brad Sherman, president of Sherman Wealth Management in Gaithersburg, Maryland. “This is a long-term process, and you can’t just be in it for a 48-hour period.”
Investors, particularly those close to retirement, should also keep in mind that pulling all of their assets into “safe” investments will leave them unprotected against inflation risk and loss of purchasing power.
“People act as if the day you retire, you’re going to spend it all,” said Mendels. “It’s going to last you 30 years, and you still need to worry about inflation and your standard of living.”