How To Plan For Retirement During A Bear Market 

If you are approaching retirement, you may want to evaluate working a couple of years longer, take on a side gig, delay taking social security, or modify your investment portfolio.

We spoke to financial experts on retirement planning who shared several options to help retirees better weather market downturns.

Avoid Panic Selling

Investors should spend less time listening and watching the news. They should also focus on what they can control, which comes down to how much they're saving and how much they're spending.

Consult With Your Financial Advisor

If you are investing over the long term, it might be a good idea to go through what you own with your advisor position by position.

Create a separate “Recession Proof Fund” savings account. This account has two years' worth of living expenses in cash at retirement. If there is a bear market, it allows you to stop drawing on your investment until the market recovers.

Bolster Your Cash Reserves

Re-Evaluate Your Budget

You want to right-size your budget for retirement by reducing spending, eliminating debt, and avoiding carrying any credit card balances.

Rebalancing your portfolio is another strategy to consider during downturns if you want to retire early because it helps control risk and prepare your portfolio for the rebound to maximize your return.

Asset Allocation And Rebalancing

Take Advantage of Tax Loss Harvesting

Tax-loss harvesting takes lemons and makes lemonade by harvesting or selling at a loss. You can use those losses to lower or eliminate future taxes on capital gains.

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