Retirement pushback: How retirement plans got halted or forced for millions
Retirement plans and financial goals have been completely knocked off course for many that were approaching retirement. Dustin Stanley, wealth management advisor of Strategic Wealth Designers joined WKYT to talk about a story Yahoo Finance ran highlighting the landscape for those in the workforce and those who were set to retire, being changed by COVID-19. It noted that by 2024, nearly 25% of the workforce (about 44 million people) would be over 55, that is until Coronavirus showed up. Stanley shares some insight on what a proper investment portfolio should look like to whether this financial storm.
“If your portfolio has proper safety nets, proper asset allocation, you could potentially avoid a major loss, but even still there is major volatility right now in many portfolios,” Stanley says. “Just this week I had a client call me and his employer told him he was going to be laid off in July, he asked me, ‘What Should I do? Can I retire?’ and we had built a proper retirement plan and I was able to tell him yes you’re going to be okay to retire if you want, so building a proper financial plan will help you navigate the volatility of this pandemic.”
Millions of long-tenured employees have been forced into early retirement. From manufacturing to airline employees to corporate office positions, which gives way to the potential to tax some of our already strained systems like social security and Medicare. Stanley says some of those people likely won’t be rehired into the workforce. “Companies are realizing they can become more efficient, they can do many things digitally or just let employees work from home, so the entire workforce landscape will be changed by this pandemic,” he says.
For those concerned about the retirement plans, Stanley says that if you are experiencing high levels of volatility in your investment portfolio, go and get a second opinion from an independent fiduciary financial advisor. “If you don’t have proper asset allocation, you want to get a 2nd opinion, follow the Rule of 100 – take your age and that is the amount of money you should have safe, if your 60, you should have 60% of your assets in safe accounts, if you’re 30, have 30% in safe investments.”