As stocks gyrate on coronavirus fears, many investors nearing retirement will need to change their outlook, said Chris Hogan, author of “Everyday Millionaire,” in a conversation with Yahoo Finance.
“Right now, we’re dealing with unprecedented times… but people that are a year out from retiring, they’re going to have to adjust their expectations,” he said.
He said some may be able to move forward and take an early retirement, while others may need to work a part-time job to make the numbers work.
“They’re planning to work another year or two longer, while they allow this market to be able to really correct and really continue to move forward,” he said.
“People that are a year out from retiring, they’re going to have to adjust their expectations,” said Chris Hogan, author of “Everyday Millionaire.” (Photo: Getty Creative)
But Hogan advised those who are considering early retirement to step on the brakes first. They should talk to a financial advisor or an expert before making any rushed decisions.
“I’m warning people: Do not make knee-jerk decisions without sitting down and talking to your investment professional, because then you would miss out on that rebound that is going to come,” Hogan said. “And here’s the reality, we all know the market is going to come back.”
This isn’t the first time investors have overcome financial setbacks, he noted. From SARS, 9/11, and the Great Recession, the market always bounced back.
“And so we know it’s going to come back, but it’s these people that are in this retirement phase, or close to it, that are really having to adjust their game plan,” he said.
Dhara is a reporter Yahoo Money and Cashay. Follow her on Twitter at @Dsinghx. ‘ data-reactid=”53″>Dhara is a reporter Yahoo Money and Cashay. Follow her on Twitter at @Dsinghx.