Over the past few years, MO Deferred Comp savers have enjoyed some strong investment performance. When account balances are growing and the headlines are positive, it's easy to feel confident about investing. But eventually, there will be periods of volatility and declining markets. When that happens, many savers, myself included, start asking the same question. Should I stop saving and investing until things get better? Before you make any major changes to your account, remember that successful investing starts with a solid plan. Think about it like a road trip. If you were driving across the country and hit a stretch of bad weather, you probably wouldn't turn around and head home. Instead, you would likely slow down, stay focused, and keep moving towards your destination. Investing works much the same way. Market downturns are a normal part of investing. In fact, every major market decline in history has eventually been followed by a recovery. The challenge is that no one knows exactly when that recovery will happen. That's why having a plan and sticking to it matters. Whether retirement is a few years away or a few decades away, your strategy should be built to account for the market ups and downs. When you stop investing during a downturn, you may miss the opportunity to buy investments at lower prices. And when the market recovers, those missed contributions can mean missed growth. Instead of reacting to short-term market movements, focus on the plan you created. Ask yourself, "Has my retirement goal changed? Has my timeline changed?" If the answer is no, your plan may not need to change either. Remember, the most successful investors are not the ones who predict market moves. They're often the ones who stick to their plan through the ups and downs. So, the next time the market gets rocky, remember a good saving and investing plan isn't designed for perfect conditions. It's designed to help you reach your destination, even when the road gets rough. If you're unsure whether your current investment strategy still fits your goals, schedule a review with a MO Deferred Comp Financial Education Professional and make sure your plan is working for you.
