Important Update: The Coronavirus (COVID-19)


Contacting the MO Deferred Comp Plan

The MO Deferred Comp Plan is taking the Coronavirus (COVID-19) very seriously and our top two priorities are keeping our participants and staff safe. While our team continues to work in the field, we are monitoring the situation very closely. The MO Deferred Comp Plan recommends that if you need to meet with a deferred comp education specialist, you do so via a Web 1-on-1 (video) consultation, by contacting your local education specialist, or by calling the MO Deferred Comp Hotline at 1-800-392-0925. You can also access your account 24/7 through our website by visiting www.modeferredcomp.org or by downloading our mobile app. As always, we are here to serve you and are committed to providing you with an exceptional level of service despite the COVID-19 threat.


Saving for Retirement during Extreme Market Volatility

Currently, the financial market is being significantly affected by the coronavirus and the growing concern associated with it. The virus is causing fear and uncertainty in all of us, but the MO Deferred Comp Plan encourages you to stay calm and think long-term when it comes to your investment strategy. When saving and investing for retirement, it’s important to step back from the daily headlines because market corrections do happen and patience during these times is a best practice. Before making any drastic changes to your investments based on the current economic and health conditions, ask yourself three questions:

  1. Has a major life event occurred or has there been a change in your current living situation?
  2. Have your retirement plans changed?
  3. Have your retirement savings goals/needs changed?

If you answered “no” to any of the above questions and are solely basing your decisions on media headlines, panic, and short-term performance, you may want to revisit your decision as your decisions should be based off of your personal, long-term goals and needs.

It’s also important to remember, this is not the first epidemic or crisis to wreak havoc on the markets. While the below epidemics caused short-term disruptions and extreme market drops, economic growth later resumed.

CRISIS/EPIDEMIC YEAR RETURN 1 YEAR FOLLOWING
1987 Market Crash November 1987 22.66%
SARS April 2003 22.66%
Avian (Bird) Flu June 2006 20.49%
Lehman Bankruptcy October 2008 -6.60%
H1N1 (Swine Flu) April 2009 37.78%
9/11 Terrorist Attack September 2001 -20.61%
Ebola March 2014 12.61%
Zika January 2016 20.03%
Brexit Vote Passed June 2016 17.87%
2018 Market Correction December 2018 16.06%

https://www.ifa.com/articles/market-timing_more_evidence_really_doesnt_work/.

During times of extreme market volatility, it’s important to remember that market fluctuations are normal and that staying the course may produce greater returns in the long run. As difficult as it may be, try focusing on what is within your control, like saving more.

The MO Deferred Comp Plan will continue to closely monitoring the current situation and recommend you check back periodically for any updates. If you have questions regarding your account, we encourage you to contact your local education specialist to discuss your situation.