Coronavirus and Your Retirement Savings: Answering Important Questions
There's a lot going on, and investors and retirement savers could use all the guidance they can get.


As we navigate the coronavirus outbreak, a new survey shows Americans are more concerned about their finances than their health. Wall Street may be fueling that concern right now. Stocks were at record highs in February of this year. Since then, they’ve fallen more than 30%. The volatility stems from fears of a global economic slowdown due to the coronavirus pandemic. Investors have also been reacting to an oil price war, emergency interest rate cuts, the temporary closing of schools and businesses and news from Capitol Hill about the government’s plan to fight the spread of COVID-19. All of this is causing concern about our personal finances and our future retirement.
With that in mind, let’s take a look at some common questions financial planners everywhere are answering right about now.
Should I be worried about the volatility on Wall Street?
Investing is often controlled by our emotions. It is common to feel anxious and worried when the stock market drops, causing some investors to sell. While you may have a loss on paper, it isn’t realized until you take action and sell. The old saying, buy low and sell high, still holds true. Now isn’t the time to sell. Indeed, for younger investors, it may be the time to buy in, or at least stay the course. Don’t let your emotions drive your investment decisions. Instead, focus on your long-term goals. If you don’t have a financial plan, now is the time to meet with a financial adviser who can help you set savings goals for retirement and create a plan to reach them. Take time to ask your adviser questions so you understand your plan. It’s much easier to feel calm and confident during times of uncertainty if you understand how your plan is set up to help you achieve your goals.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Are we headed for a recession?
By definition, a recession is two or more quarters of negative economic activity. It is normal for the stock market to experience ups and downs, and some economists are predicting we will enter a recession in the coming months. However, history proves the stock market will recover following a recession. It took just over five years for the market to make a complete recovery following the Great Recession, which led to the longest-running bull market on record, from March 2009 to March 2020. Investors who stayed the course and kept money in the market during that time reaped the rewards.
What should I do with my 401(k)?
One of the best things to do right now is to ignore your balance. Checking your balance daily or weekly during times of market volatility will only add to your worries. Instead, take a look at your account and figure out what you own. Your portfolio should be diversified and have the appropriate risk for your age and how close you are to retirement. Consider the Rule of 100: Subtract your age from 100 and that is the percentage of your account that should be exposed to riskier investments like stocks. The rest should be in safer investments. For example, if you are 60 years old, 40% can be exposed to risk and the other 60% should be in safer investments. This is just a rule of thumb. Work with your financial adviser to rebalance your portfolio as you age.
What is the federal government doing to help?
New numbers show as many as 10 million workers will see an impact on their paychecks as restaurants and other businesses take a hit from the coronavirus outbreak. As a result, the federal government is working on a stimulus package to help ease the financial burden and stabilize the economy. The Treasury Department has proposed sending checks to Americans starting in early April. The amount proposed is $1,000 per adult and $500 per child, meaning a family of four could receive $3,000. The proposal calls for a second round of checks to go out in May, if necessary. Congress and President Trump are working on a number of proposals to help small businesses, airlines and other sectors hit hardest by the coronavirus pandemic.
Bottom line, our lives have been impacted far beyond our finances, and it is common to feel anxiety right now. If you can control one thing, it’s your plan for retirement. A solid plan will help you feel more secure as we ride out the rollercoaster on Wall Street.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Tony Drake is a CERTIFIED FINANCIAL PLANNER™ and the founder and CEO of Drake & Associates in Waukesha, Wis. Tony is an Investment Adviser Representative and has helped clients prepare for retirement for more than a decade. He hosts The Retirement Ready Radio Show on WTMJ Radio each week and is featured regularly on TV stations in Milwaukee. Tony is passionate about building strong relationships with his clients so he can help them build a strong plan for their retirement.
-
A Case Study in Mismatched Fund Returns
Stock Market Why do a fund's returns sometimes differ from its underlying index? A longstanding legal principle holds the key.
-
Love Travel and Pickleball? Turn Any Vacation Into a Pickleball Vacation
Travel Ideas Love travel and pickleball? Combine the two for a memorable trip, whether it's to a pickleball retreat or a fancy vacation home.
-
Retirement Reality Check: Four Risks You'll Want to Avoid at All Costs
There's no crystal ball for retirement planning, but the closest thing could be to consider the key risks you'll face in retirement and build a plan around them.
-
Eight Ways to Financially Plan Your Way Through Challenging Times
A chief wealth strategist makes some suggestions about how to better position yourself financially while coping with economic uncertainty.
-
Five Reasons Roth Conversions and Pensions Work Well Together
This financial planner unpacks why Roth conversions can save you big-time on taxes if you're a retiree with a pension.
-
The One Surefire Way to Keep Your Car Insurance Premium From Soaring
I'm an insurance expert, so I know from extensive experience: The more claims you file, the higher your car insurance premium. So maybe don't ask your insurer to fix that tiny scratch on your bumper.
-
What You Expect in Retirement vs What You Get: Where Reality Can Surprise You
A financial planner explores how your expectations for retirement can greatly differ from reality — and how you can plan for that.
-
What's Up With the 10-Year Treasury Bond: Four Financial Experts Weigh In
A financial professional and three colleagues explain the fluctuations in the 10-year Treasury bond and what investors should do.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them Up
A midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)
A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.