T. Rowe Price Personal Investor - What can I do to retire confidently during market uncertainty? (2024)

FAQs

T. Rowe Price Personal Investor - What can I do to retire confidently during market uncertainty? ›

Key Takeaways

Revisiting your savings rate or your spending rate in your retirement could be something investors can have control over in a volatile or uncertain market. Take a good look at your asset allocation during times of market uncertainty. Keep an eye out for tax-saving opportunities.

Key Takeaways

Revisiting your savings rate or your spending rate in your retirement could be something investors can have control over in a volatile or uncertain market. Take a good look at your asset allocation during times of market uncertainty. Keep an eye out for tax-saving opportunities.

Rowe Price suggests the 4% guideline as a starting point for a withdrawal strategy. This means that in the first year of retirement, you could consider a withdrawal amount that is 4% of your retirement account balance. Every year, reassess the following to adjust your withdrawal amount if needed: Your spending needs.

There is always a level of risk and uncertainty when investing which is increased in times of wars, recessions, pandemics, and other negative occurrences. When hard times come, investors move their money out of equities to safer assets, such as precious metals, government bonds, and money-market instruments.

What Happens to My 401(k) If the Stock Market Crashes? If you are invested in stocks, those holdings will likely see their value fall. But if you have several years until you need your retirement account money, keep contributing, as you may be able to buy many stocks on sale.

Such models typically assume that investors when faced with uncertainty take a conservative approach and pursue a course of activity based on the worst case scenario (maxmin expected utility). One area of particular interest is how the market faced with uncertainty reacts to the receipt of new information.

The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans. Some valuable perspective can be found in the 2022 US Census Bureau's median income for couples 65 and over: $76,490 annually or about $6,374 monthly.

What is the rule of 55 at T. Rowe Price? ›

Generally allows for penalty-free withdrawals if you retire the year you turn 55 or older. Otherwise, penalty-free withdrawals are available after age 59½.

T. Rowe Price is best for long-term investors who want support in making portfolio management and investment decisions, including planning for retirement and college. Individual, tax-advantaged retirement mutual fund accounts are T. Rowe Price's primary business, but you can open a more traditional brokerage account.

Certain sectors perform well during economic turbulence. These include utilities, healthcare, and consumer staples. People still need electricity, healthcare, and everyday essentials regardless of economic conditions. Defensive stocks provide stability and dividends.

Bonds, on the other hand, are safer investments but usually produce lesser returns. Having a diversified 401(k) of mutual funds or exchange-traded funds (ETFs) that invest in stocks, bonds and even cash can help protect your retirement savings in the event of an economic downturn.

Bonds usually go up in value when the stock market crashes, but not all the time. The bonds that do best in a market crash are government bonds such as U.S. Treasuries. Riskier bonds like junk bonds and high-yield credit do not fare as well.

Diversification into non-equity-based assets, such as bonds, property and commodities, can also protect your portfolio in the event of a stock market crash. It's important to pick assets that aren't correlated, in other words, their price movements do not move up and down together, but rise and fall at different times.