Stocks plunge as chipmakers, AI infrastructure stocks lead sell-off
BEP Research founder Ben Pouladian analyzes the technology stock sell-off and Democrats‘ <a Market declines can be unsettling, particularly for Americans approaching retirement, but the biggest risk is often not the decline itself. It’s making an emotional decision in response to it," he told FOX Business.
For younger investors, maintaining consistent 401(k) contributions during a market slump can actually be beneficial, as it allows them to acquire assets at lower price points, White noted.
Jay Duffy, co-founder and managing partner at Frame Wealth, told FOX Business that the primary concern lies with those nearing retirement whose portfolios may not be positioned to endure a significant market correction.
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“The investors I worry about aren’t the 35-year-olds. It’s the 62-year-olds who are three years away from retirement, sitting in portfolios that were built for someone with another 20 years to recover,” he said.
Duffy cautioned that retirees forced to liquidate investments during a downturn to fund living expenses encounter what financial professionals refer to as sequence-of-returns risk, which can rapidly deplete retirement savings.
White similarly advised those nearing retirement to hold sufficient cash and conservative assets to cover immediate withdrawal needs, thereby minimizing the necessity of selling stocks during a market dip.
“Your retirement date shouldn’t dictate whether you panic. It should dictate how you’ve prepared. A well-constructed retirement portfolio should anticipate market declines, not require a complete overhaul every time they occur,” he said.
Duffy suggested that investors should evaluate rebalancing their portfolios if their current allocation no longer aligns with their risk tolerance or retirement timeline, rather than resorting to automatic selling or inaction.
“Don’t make permanent financial decisions based on temporary market emotions,” he said.
