Are you thinking about moving your retirement savings from the stock market to CDs? Read this first

The stock market has always had its ups and downs, Last month’s sharp drop It was enough to scare investors. While the market is recovering, many people are still shaken up from seeing their portfolios decimate overnight, especially when the retirement fund chunks are stocks. and The economy is still unstableSome wonder whether nest eggs should be moved to low-risk assets as follows Deposit certificate.

Not too fast, experts say.

“CDS can feel like a safe haven in this type of environment because it offers predictability. This is appealing when everything else feels unstable,” says Taylor Kovar, Certified Financial Planner and CEO. 11Finance. However, he warns that “there are some trade-offs.”

Here’s what you need to know before making a dramatic move:

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Is retirement a long way? Stick to your current strategy

Stock market fluctuations are scary, but they’re smart Investment Strategy The cause of the dip. The S&P 500 has historically been distributed around a 10% annual revenue For investors who will keep their money there for decades. If you have it years before you retire, you can afford to ride the waves and raise money over the long term.

“One of the biggest risks of retirement is becoming conservative too quickly.” Marina Wealth Advisor. “Resignation can last for more than 20 years, so you risk becoming too conservative too quickly and draining your portfolio early.”

It is wise to maintain a portion of your retirement savings for low-risk assets, but the amount depends on many factors, including age and risk tolerance. Financial Advisor or Robo Advisor It can help you create the best strategy for you.

Are you approaching retirement? It makes sense to move more money to CDs

If you are near retirement or have already retired, you will have less time to recover from the stock market decline. Therefore, your priority should be that fewer for growing nest eggs and less for storing. In this case, you will allocate more of your savings to low-risk, fixed income assets like CDS Bonds It could be a smart move. Again, a financial advisor will help you decide on your best route.

Don’t succumb to panic

Whatever your age and investment goals, don’t make dramatic changes to your retirement plan by scaring you, as economic headlines scare you.

“For investors who have been rattled by recent dips, I say this: Don’t make emotional decisions according to short-term volatility. Take a step back, review your timeline and make sure your investments match today’s goals and risk tolerance, not five years ago. “A balanced plan usually includes both stocks and CDs, one for growth and one for peace of mind.”