Coronavirus pandemic gives opportunity to retirement investors – 10News


SAN DIEGO (KGTV) – Financial advisers say the coronavirus pandemic has created an opportunity to make some smart-money moves as you plan for retirement.

“It’s a once in a lifetime opportunity,” says David Reyes, the founder of Reyes Financial Architecture. “There’s lots of planning that can be done around it, just proactively. So that’s a big deal.”

At the start of the pandemic, the stock market dropped as much as 35%. Now that it’s starting to recover, Reyes has four main moves he thinks people should make.

1. Understand your options to change investments/strategies
2. Review your budget and personal spending habits to find more ways to save
3. Create a more personal relationship with your financial adviser
4. Learn your comfort level for risk

“This taught a lot of people how much risk they can handle,” says Reyes. “Emotionally, it’s learning what we can take during that which determines what kind of investment plan we should have.”

Reyes says if the market’s recent volatility scared you, look for a more conservative method of investing.

He also says the Federal CARES Act has provisions that will let you use the money you’ve already saved.

Under the CARES Act, you can take money out of a 401K or an IRA without paying a penalty. You also get a few years to pay the taxes on the distribution, instead of having to pay the tax all at once.

Reyes says that makes now a great time to move some of that money into investments that may be more stable or could have higher returns.

“We can reallocate now,” Reyes says. “That could give you better protection on the downside. It also gives more opportunity as the market goes up to have better performance.”

Overall, Reyes says to focus on a specific “goal” for your investments, rather than how the markets fluctuate. He also says people need to meet with their advisers before making any money moves.



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