In “5 Strategies for Retirement Immunity Despite the Coronavirus Crisis,” on Kiplinger.com, Evan T. Beach, CFP, AWMA offers tips for keep yourself on track.
Save Cash—If you are still working you can work on growing your rainy-day fund. While many people have already lost their jobs, many more may still find they are without employment in the months to come as companies look for ways to cut costs even further. If you are fortunate enough to remain employed don’t rest on your laurels: increase your savings.
Consider a Roth Conversion—The article asks and answers. “Why would a global pandemic and the ensuing bear market make Roth conversions any more attractive? Because you pay taxes on the converted amount.” If your IRA has lost value with the current global financial upheaval, you will be pay less in taxes on the conversion. Then you can have time to recover the amount lost.
Sell Profitable Investments—It you are looking to your investments to cover expenses, the article suggests, “You should be selling the things that are doing well and allowing the things that aren’t some time to rebound.”
Early in the Kiplinger article, Beach writes that anyone who is within five years of retirement needs “…a written (even if digital) plan that shows how much you’ll have and where it will come from. The plan also must account for taxes and inflation.”
However, while some people can write a plan, they are finding themselves in a very tough spot right now and Beach also suggests they-
Think about Refinancing—If you are still employed but worried how long that will last, you can refinance while you still get a paycheck to lower your monthly expenses.
Meanwhile in “Should you with draw money from your retirement plan?,” Washington Post columnist Michelle Singletary tells people they should only withdraw retirement money as a last resort.