The present market situation has caused a bit of a pause for us as we figure out when we will retire. In four years, or age 60 (for my hubby), we still would have a sizeable nest egg, but not nearly what we thought we would have. We are considering and expecting a very slow recovery, and only a 3% rate of return once it does. Once our investments come up to what they were before the crash, we plan to put almost all of our investments to conservative, non volatile funds.
Along with watching our funds in the stock market, we are assuming our cash savings in bank accounts will not earn much, if anything. Still, we are stashing away as much as we can, and I still anticipate we will meet our cash goal in four years.
What else has changed for us? I’m applying for a job and my husband is considering working until 62 or 63. We are both healthy, and want to make sure we work as long as we can to save the amount of savings we feel comfortable with in retirement…without the concern of another bear market down the road. If we save enough, we won’t have to worry about interest rates. Period.
I know we are fortunate. I know we have it better than a lot of people. I’m grateful every single day for my husband and his secure job. However, if he lost his job tomorrow, we would be okay. We have a considerable amount of equity in our home, which we could sell immediately. Downsizing is in our future anyway, so it wouldn’t feel like a hardship. In the meantime, while he is working, we are saving and paying down our mortgage as quickly as we can.
That is the financial side, but how am I navigating today?
Taking time to just breathe.
Trying to help others where I can.
Remaining positive in this space.
It is scary, I know, and I’ve lived through bear markets, 911, and the snipers (which traumatized me for months) but I believe we will prevail.
Just remember we are all in unchartered territory, including our government officials. Be patient. Don’t blame. Don’t hoard. Share. Above all, be kind.
Sending my love and prayers to all those who are suffering a loss, whether it be a loved one who lost the battle with this illness, loss of pay, or loss of savings.
We are all in this together.