Market volatility can startle even the most experienced investors. No matter where you are on your retirement path, it’s important to keep the following in mind when deciding whether or not to remain invested.
Investors who can continue contributing to their retirement have the potential to take advantage of market recoveries. For example, those who stayed in their plan from 2022 through 2024 saw their average account balances increase by 86%1.
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Historically, market rebounds are concentrated in a few distinct spurts. We expect the market to rebound again, but we can’t know exactly when that will happen.
Consider the above chart, which shows the hypothetical return of $100K invested in the S&P 500 Index from March 2021 to February 2024 (yellow bar). To the right, you can see the impact of having missed top-performing days. Staying invested earned more than double that of the portfolio which missed the top 10 performing days.
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