Pub. 10 2020 Issue 2

18 www.azbankers.org What to Do With Your 401(k) During the COVID-19 Pandemic By D’Angelo Johnson, Bankers Trust T HE FIRST FEW MONTHS OF 2020 WERE CHAOTIC. WE EXPERIENCED the spread of the novel coronavirus, a stock market decline, business closures, reduced hours and large numbers of employees working remotely. You may be wondering what, if anything, you should be doing with your 401(k) during this period. We all are experiencing a high level of stress and anxiety these days. For some, thoughts of retirement seem a distant dream, es- pecially when we are concerned with day-to-day expenses and our family’s health. For those close to retirement, this market uncertain- ty may cause anxiety and concern. Here are a few things you can do to make the best of the situation. Focus on the long-term We are surrounded by 24/7 news, which can increase our anxiety about the market. Don’t let headlines drive your investment strat- egy. Resist the knee-jerk emotional reaction to sell investments or try to time the market. Your retirement plan is a long-term invest- ment. Short-term market volatility shouldn’t change your long- term saving or investing strategies. Retirement strategies should be based on your personal situation, goals, risk tolerance and time horizon until retirement. It is natural to have swings in market pricing, both up and down. Keep in mind that volatility works in both directions, and it is upside volatility that generates strong returns. The largest upward