Investments lost so much value!

[Smilinggirl]

I know people talk about only looking at their retirement accounts once or twice a year, but I looked and wow, I did not like what I saw. I don't have nearly as much as most people on here and I know it will eventually go back up, but when you're looking at the possibility of retiring and you adjust your previous plan because of inflation and you're trying to figure out your budget for future years, yikes! Tell me what you do to stay calm about it all. I know this might be a good time to put some money into taxable investments for the future, but my knee jerk reaction is to hold on to every dollar tightly for now. Do you think there's a rebound in sight?

[disneysteve]

I think the key is to keep reminding yourself that stocks are a long term investment. Even if you are close to retirement as I am, it’s still a long term deal. I’m 57 so I will hopefully be living off that money for 30 years or more. It’s hard seeing it drop by tens of thousands of dollars right now but I just try to remember that I don’t need it all the day I retire. I only need a tiny piece of it each year so there’s plenty of time for it to recover and grow.

[james.hendrickson]

I know people talk about only looking at their retirement accounts once or twice a year, but I looked and wow, I did not like what I saw. I don't have nearly as much as most people on here and I know it will eventually go back up, but when you're looking at the possibility of retiring and you adjust your previous plan because of inflation and you're trying to figure out your budget for future years, yikes! Tell me what you do to stay calm about it all. I know this might be a good time to put some money into taxable investments for the future, but my knee jerk reaction is to hold on to every dollar tightly for now. Do you think there's a rebound in sight?

Disneysteve is right, just keep plugging away at it. The long term history of US markets is that they generally increase. So you should be fine you make some prudent investments now. Just be sure to buy quality things that you understand, limit fees and diversify.

[bjl584]

This is a marathon not a sprint.
As others have mentioned, you are in this long-term.
What happens over the course of a few weeks or months doesn't really matter.

That being said, there is nothing wrong with periodically evaluating your positions to ensure that you are invested in quality holdings with a good track record.

[Smilinggirl]

Thanks everyone. I don't really have many friends that talk about finances or are in a similar situation as me, so I appreciate this site.

[rennigade]

OP...did you forget about the massive run up over the past 10 years? I always remind myself its short sighted to look at the last couple months when the past decade has been really really good.

[LivingAlmostLarge]

OP...did you forget about the massive run up over the past 10 years? I always remind myself its short sighted to look at the last couple months when the past decade has been really really good.

This exactly

[james.hendrickson]

I know people talk about only looking at their retirement accounts once or twice a year, but I looked and wow, I did not like what I saw. I don't have nearly as much as most people on here and I know it will eventually go back up, but when you're looking at the possibility of retiring and you adjust your previous plan because of inflation and you're trying to figure out your budget for future years, yikes! Tell me what you do to stay calm about it all. I know this might be a good time to put some money into taxable investments for the future, but my knee jerk reaction is to hold on to every dollar tightly for now. Do you think there's a rebound in sight?

Smilinggirl - there is also a concept call "buy the dip". What this basically means is purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the "dip" is only a short-term blip and the asset is likely to bounce back and increase in value in the future. So, provided that the assets in your retirement account are quality - you could consider this a buying opportunity - you're basically getting the same investment at a lower price. This is a workable strategy if you have time for the asset to bounce back before you need the money.

In any event, I tend not to worry about price movement too much - I just make regular contributions every month.

[MoneyMike]

OP...did you forget about the massive run up over the past 10 years? I always remind myself its short sighted to look at the last couple months when the past decade has been really really good.

That's an excellent point, but it's only applicable to those who have been in the market for that long. A lot of retail investors jumped in during the "COVID crash," and this may be the first (and longest) downswing they've experienced since their investing journeys began.

[james.hendrickson]

That's an excellent point, but it's only applicable to those who have been in the market for that long. A lot of retail investors jumped in during the "COVID crash," and this may be the first (and longest) downswing they've experienced since their investing journeys began.

yep, especially for newer investors in the market.

[BobbySands]

I have to keep reminding myself that sometimes. My IRA account doesn't look too bad. But it doesn't matter too me at the moment cause ive got another 10 years to go till I will get to use it.

[Nutria]

That's an excellent point, but it's only applicable to those who have been in the market for that long. A lot of retail investors jumped in during the "COVID crash," and this may be the first (and longest) downswing they've experienced since their investing journeys began.

Or OP is young. Not too many 25 year olds started funding their IRAs and 401(k) 10 years ago.

Heck, not many 35 year olds started fully funding their retirement funds 10 years ago...