How Will a Market Crash Affect Your Retirement? – Arizona Daily Star

There’s no set rule as to how much you should invest in stocks versus bonds, but a good rule of thumb is to subtract your age from 110, and the result is the percentage of your portfolio that should be allocated to stocks. For example, if you’re 65 years old, you may allocate around 45% of your portfolio to stocks and 55% to bonds.

Keep in mind that this is just a rough guideline, and your individual asset allocation will depend largely on your tolerance for risk and individual preferences. In general, though, the older you are, the more conservative your portfolio should be.

3. Keep a long-term outlook

Finally, although market downturns can be intimidating, they are temporary. Historically, the stock market has always recovered from every correction and crash it’s experienced, and there’s a very good chance it will rebound from future downturns, as well.

If the market crashes again, nobody knows how severe it will be or how long it might last. But by staying focused on the long term and trying not to get hung up on short-term market movements, it will be easier to weather the storm.

Stock market volatility can be unnerving, especially if you’re close to retirement. But by taking a few steps to prepare and maintaining a long-term outlook, you can rest easier knowing you’re ready for whatever may happen.

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