13. Raiding Your Retirement Savings – is this EVER a good idea?

06/17/20 • 18 min

As we all know, life is far from linear and sometimes things happen unexpectedly that totally disrupt our flow and require some creative thinking to address. You know the saying, “desperate times call for desperate measures.” Dipping into one’s retirement savings qualifies as a “desperate measure” and sometimes we might think there is no alternative.

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12. The She-Cession: The Facts, The Effects and The Solutions

The coronavirus pandemic has caused people throughout the country to suffer financially due to job losses. The Bureau of Labor Statistics shows that unemployment has risen more acutely for American women than men with an even bleaker picture for women of color. The Covid-19 crisis has highlighted the consequences of gender and racial inequities in the workforce, with women being particularly vulnerable on several fronts to the pandemic’s aftermath.

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14. How did your investment portfolio perform during the Covid-19 Crisis?

The past few months have been a real roller coaster ride in the stock market. Many people are fearful of the volatility in the stock market and are irrationally driven by fear to cash out of their strategy and become less inclined to invest in the future. In a March 2020 survey, over one third of adults reported that they were less likely to invest in the stock market based on what they knew about the coronavirus. Only 12 percent of respondents said they were more likely to invest. Hmmmm.... I think these statistics demonstrate panicked and NOT prudent decision making.

Check out this week's Fiscal Feminist blogpost for more on this important topic.

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Sources: Get Smarter About Money: https://www.getsmarteraboutmoney.ca/resources/covid-19-and-your-money/market-volatility-and-investor-behaviour/ Hartford Funds (charts): https://www.hartfordfunds.com/investor-insight/client-seminars/beyond-investment-illusions/reactions-to-volatility.html RBC: https://www.rbcgam.com/en/ca/learn-plan/investment-basics/understanding-the-relationship-between-volatility-and-returns/detail Capital Group: https://www.capitalgroup.com/advisor/ca/en/insights/content/articles/volatility-the-long-term-investors-unlikely-ally.html Investopedia: https://www.investopedia.com/terms/v/volatility.asp Forbes: https://www.forbes.com/sites/jamiehopkins/2019/10/30/4-ways-to-manage-sequence-of-returns-risk/#a2de07927eb9 Investopedia: https://www.investopedia.com/terms/s/sequence-risk.asp Blackrock: https://www.blackrock.com/pt/literature/investor-education/sequence-of-returns-one-pager-va-us.pdf Investopedia: https://www.investopedia.com/investing/importance-diversification/ Schwab: https://www.schwabmoneywise.com/public/moneywise/essentials/the_advantages_of_diversification US News: https://money.usnews.com/investing/investing-101/articles/why-diversification-is-important-in-inves...