Ask Terry Questions Coronavirus virus and retirement savings

Coronavirus virus and retirement savings

By Terry Savage on March 06, 2020 | Investments

Hi Terry, I am 70 years old, I retired in 2012.
I only have about $100,000 in 4o3 B’s that I started when I was still working. I am down about $8000 and I was wondering if I should move my money to a money market fund. I can’t afford to lose everything and I think it will get worse before it gets better. What do you think?

Terry Says

I have been writing about this issue of potential loss since before the coronavirus made headlines — warning investors that after a 10 year bull market, some kind of decline was overdue. Please read my latest columns at
Specifically, as I write,the overall market is down about 12 percent from its highs. As you’ll see in my columns, a bear market –if this is one, and no one knows for sure until hindsight — could easily take away 33 percent, or more, of your market value. (Some stocks in energy, and airlines, are already down about that percentage amount.)

My suggestion is to sell down to the “sleeping point” — where your investments are no longer keeping you awake at night.

That means, you might want to move 25 percent or more to a money market mutual fund inside your retirement plan. You won’t get rich there if the market rebounds. But you won’t get poor if the decline continues!



a personal
finance question