Do you know what to do in a bear market? We believe it’s especially important to have a plan when you’re in or near retirement and don’t have the time to rebuild your savings.
You may have heard that you should buy and hold though a bear market. After all, conventional wisdom holds that the market always comes back. While that has been true, it often takes years. The market didn’t get back to even after the 2008 recession until 2013. After the crash of 1929 and The Great Depression, the market took twenty-five years to recover.
If you’re close to retirement, would you want to delay your retirement to regain that loss?
And if you’re retired and living off your investments, what would happen if they dropped 57%like the stocks on S&P 500 Index did in 2008? Could you cut your cost of living in half while you waited for the market to come back?
Bear markets and downward spirals can be huge risks to your financial security – and could even lead to you running out of money in retirement.
Why We Think You Need to Plan for Bear Markets.
Why We Believe You Need a Plan to Invest and Protect
History tells us that bear markets will happen. How can you protect your life savings from them? At Retirement Planners of America, we use a stop-loss plan to protect your principal during bear markets.
Our Invest and Protect strategy keeps a close eye on the market so we can take action when it is trending into bear market territory based on historical data. We use an objective, mathematical formula to decide when to get out of the market and when to get back in so we can help protect our clients from what we consider major financial harm. Our Invest and Protect Strategy is designed to have unlimited upside as longas an upward trend lasts. Once the trend shifts in a direction that historically indicates a bear market is on the horizon, the strategy then alerts us to get out of the equities market with what we believe are tolerable losses.