Whether you’re making a career change or just got laid off, your 401(k) may be at the bottom of your to-do list. However, moving your 401(k) is an incredibly important step that must be well-thought-out. When leaving an employer, there are typically three workable opportunities to continue the growth of your retirement funds. Understanding which route offers more advantages for continued growth that will align with your next chapter in life is the first step.
As COVID-19 continues to spread and New York City continues to be on pause, everyone is adjusting to new lifestyles in an effort to curb the spread. While there are many factors of this pandemic we cannot control, we must continue to create new routines and habits to remain physically and psychologically healthy. Below are just a few of the actions we can take.
Understanding the difference between volatility and risk is the single most important idea for us young people to understand as the stock market (and the economy) are going crazy all around us. The market right now is EXTREMELY volatile...I'm speaking with clients all day and believe me, it's scary out there. We all just need to hold onto one truth: market volatility is normal and so are market corrections! Understanding that nothing has changed for you as a long term investor will give you the fortitude and the faith to keep holding on...which is the single best decision you can make for your financial future right now.
I can't think of a better, more meaningful time to appreciate the inevitable upward trajectory of the stock market (and the economy at large) than right now...when it all looks so bleak!! Knowing these truths, and acting upon them, when everything around us seems to be crumbling will give us the power and conviction to get through it not just this time around...but every time after this too! The next few months are going to suck. Companies will be temporarily thrown off their game. The economy will lag. And then all of a sudden, they won't. They'll adapt. The economy will rebound. And the world will advance beyond this. it is the only way. There is nothing on Earth I'm more confident in.
I explain, in the excerpt below, a bit about my own financial plan and how I'm thinking about my own investments, time horizon, and future. Well, I'm writing this on March 24th, as the stock market has gotten relentlessly pounded for two weeks straight. It's brutal. Have I changed my tune from what you're about to read? Not even a little. Over the past two weeks, I've added MORE money into all of my investment accounts because I see this as an opportunity...great companies are on sale! Compared to 3 months ago- because the market is down so much- I'm able to buy more shares with the exact same dollar amount! So, (as long as I have the cash flow and don't need the money in the near term) Sign me up! Here's why time is on my side...