This article is reprinted by permission from NextAvenue.org. Just as my husband and I, both recent retirees, began drawing down our retirement savings, we’ve been hit by the barrage of nerve-racking news reports — from 9% inflation and rising interest rates to stock market gyrations and recession warnings. I called my financial adviser to ask how worried we should be.
Like many current and future retirees, we are eyeing our investment accounts daily, worrying how seriously the current market losses and global economic upheavals might erode the savings we’ve projected to see us through our remaining years. We weathered the volatility of the 2007-09 recession, so we have had experience with a devastating market downturn turning into a robust market rebound. But that was a dozen years ago, when we felt we had enough time and employment income to help us recover any losses. Now, with our income reduced to payments from Social Security, a few pensions and returns on investments, we haven’t been feeling as confident. When I called our adviser, I needed reassurance.Think about the long term “We are investors, not traders,” he reminded me. My husband and I are in our 60s and in good health, so we’re planning for at least a couple of decades of life ahead. With that perspective, our adviser noted, it’s critical to maintain a long-term approach to our investment strategies. As retirees, he told us, we should divide our savings into two categories: Cash we will need for immediate living expenses today and tomorrow, and investments that will grow our s …