The Covid-19 virus appears to have given everyone pause, both in their physical lives as well as their financial lives, whether it was voluntary or forced.
It definitely has brought me back to reality, especially in the realm of retirement. With 30% gains in my retirement accounts over the past 18 months, then 30% losses over the past 18 days, our account is back to where it was in 2018. There were some sleepless nights and worries, but I know we are still in good shape.
My husband is 56. We still have time to save, readjust and rejigger our plan. And that is exactly what we are going to do.
We’ve decided to bulk up our third ‘bucket’ more than initially planned. We lowered our percentage that is going into the stock market, and instead are adding that percentage to our cash savings. We won’t stop saving until we have at least 5 years’ living expenses in the form of cash. We know that our savings account will most likely not keep up with inflation. It will, however, offer peace of mind which, to us, is priceless.
I thought I might go back to work, but I’ve realized now is not the time. I will wait a bit and see if things get better. In the meantime, I’m looking into online work, virtual assistant work, and such. Anything to add to the cash savings.
Fortunately, the cruise line cancelled our trip which means we will be getting a full refund (and not just a credit). However, our airline tickets will only be issued as a credit. (Don’t get me started on how crooked they are). That money will not be put in our savings fund, but moved to a ‘future’ trip fund. We still want to do something special to celebrate.
And lastly, our time line for when we retire may change. We are still at least four years out to our planned retirement, but we are now considering five or six years. It all depends on how much we can save. We don’t want to retire hastily, without solid cash in hand.
That’s our new plan, and hopefully we’ll be able to meet our goal. Covid-19 slapped us back into reality, and for that I am grateful. It may just have saved our financial lives in our retirement.
How has Covid-19 changed your financial plan? Please share.