Bloomberg: “How to Navigate Turbulent Stock Market Depends on When You Want to Retire”

Bloomberg, May 6, 2022 — Marguerita Cheng, CFP® Pro, is featured in today’s article by Claire Ballentine and Suzanne Woolley, who write: “You know you’re not supposed to look, but it’s impossible to resist. When stocks are plunging, checking your investment accounts is risky business. The market turbulence is jarring for younger investors, who had gotten used to the idea that stocks always go up. And for those with a bit more experience, watching hard-earned money suddenly disappear is a terrible experience.”

During times like these, they report, experts say that it pays to keep calm and not make any drastic, stress-fueled decisions. Remember: U.S. stocks have historically performed well when the Fed is raising rates, with an average annual return of 9% in the 12 rate-hike cycles since the 1950s.

When stocks are falling, advisers say to keep investing according to your financial plan, especially involving 401(k) contributions and broad-based indexes like the S&P 500 or the Nasdaq 100. 

“You may not even be thinking about your retirement but a Roth IRA is very valuable since it grows tax-free over time,” said Marguerita Cheng, founder of Blue Ocean Global Wealth.

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