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How Long Would It Take For You To Recover From A Loss In The Stock Market?


Easily one of the biggest fears for pre-retirees and retirees is suffering a major market loss just before or during retirement. Yes, we know some of those investments will recover; however, the problem is not if they will recover, it's how long it will take and how will that impact your retirement. Would a major stock market loss create a situation where you will run out of money in retirement? We can look to the 2008 stock market crash to realize just how devastating this was for pre-retirees and retirees. Millions of Americans were either forced to delay their retirement, while others had to try to re-enter the workforce in a poor economy.

A prudent investor should thoroughly evaluate his or her exposure to risk when approaching retirement. While stocks and mutual funds can certainly bring great returns on an investment, those returns also come with significant risk. At The Trust Group Financial Services we understand risk and know how to mitigate it for our clients.

To begin, we want to illustrate just how long it could take to recover from an economic loss. So we've provided this helpful calculator below. We encourage you to run a few scenarios through our calculator and see just how long it will take to recover if you were to suffer a loss. Keep in mind, by the time your investments have recovered the next crash could be right around the corner.

After you've run the illustrations, ask yourself if the way your retirement assets are positioned mirrors your current risk level and retirement horizon considering the possibility of a major loss. If it doesn't, start the conversation today. Let us show you a better path for your retirement. We truly want to help you protect your hard earned assets.

401(k) Fallout
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