Amid COVID-19 stock market volatility, advisors say don’t cash out

Local News

DAYTON, Ohio (WDTN) – The volatile movement of the stock market is having an impact on individuals. Some people are seeing their 401k’s take a hit.

“It’s normal to have something like this occur every decade, or couple of times every decade,” said Mark McEvily, Chief Investment Officer at Jessup Wealth Management. 

“Until we begin to see volatility come back down, we’re going to be in choppy waters.”

If you have more than 10 years until retirement, McEvily recommends you hold back on any changes to your 401k. He says right now you’re buying into those contributions at a lower rate than you will in the future.

McEvily said, “This is a good time to keep contributing and making sure your taking advantage of your full company match.”

If you’re further out from retirement, it might be more beneficial to increase your IRA or 401k contribution. 

For those who may be within 10 years of retirement, experts say don’t cash out and leave your plan as is. 

“Right now, it’s very hard to look past the next week or even the next month but again this will get better,” McEvily said.

McEvily and his partner talk about a number of financial issues on their podcast, The Independent Advisors. They recommend with interests rates low right now, you may find that it’s a good time to refinance your home. 

“If you compound that over a two or three year period, that has huge amount of savings in terms of household cash flow,” McEvily said.

If you own a share of a stock, you can cash out a little if you’re struggling financially. Otherwise, you may lose more if you’re timing to getting in or out of the market is off. 

“They just want to stop the bleeding right away which I completely understand but also making that decision to get back in is really, really hard,” said McEvily.

With so much uncertainty, McEvily says control what you can and that’s your spending. 

“This is also why we always recommend everyone have at least six months of saving in an emergency account,” McEvily said.

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