Worried how the stock market could impact your retirement? Here are 3 questions from experts.

The recent market volatility has left many individuals feeling anxious about their retirement savings, especially as stocks continue to slide. This is particularly concerning for Gen Xers, as the oldest members of this generation are reaching retirement age. However, financial experts advise against making hasty decisions based on fear, as this can lead to financial losses. Instead, it is crucial to focus on key investment questions before taking any action.

Since President Trump’s inauguration, his trade policies and tariff actions have unsettled investors and consumers alike, raising concerns about inflation and economic growth. The S&P 500 briefly entered “correction” territory last week, indicating a 10% decline from its recent high. This market turbulence has caused distress among individuals saving for retirement.

Experts suggest evaluating your risk tolerance and risk capacity before making any changes to your retirement account. It’s important to understand how you feel about risk emotionally and psychologically, as well as objectively assess your resources to manage that risk. Additionally, considering your investment time horizon is crucial. While you may be nearing retirement, your actual investment timeframe could be much longer than you think. Trying to time the market or trade individual stocks based on short-term fluctuations is not recommended and often leads to financial losses.

Diversifying your investment portfolio and rebalancing during rocky market periods can be beneficial. Adding international stocks and different types of fixed income investments can help spread the risk. It’s also essential to maintain emergency savings to prevent tapping into your retirement account during financial stress. Building up your emergency fund and ensuring it is easily accessible can provide a safety net in times of need.

Overall, it’s important not to panic during market uncertainty but rather focus on these key investment questions to make informed decisions about your retirement savings. By assessing your risk tolerance, investment horizon, and portfolio diversification, you can navigate market fluctuations with confidence and secure your financial future.