Stocks and bonds are down, inflation and interest rates are up, and the headlines are all over the map. If you’re worried about what today’s market volatility means for your retirement, we’ve got you covered. Here are five things to know.
The fear is real...: The Federal Reserve is raising rates in an effort to curb inflation, which is making it harder for companies, people and governments to borrow money. This has some investors worried about a recession.
…but the headlines are worse than the reality: We think inflation has already peaked and any recession in the U.S. should be shallow and mild.
Even so, we’re not out of the woods yet: Stock and bond prices will continue to move sharply and erratically as the global economy absorbs a new normal.
This argues for an emphasis on safety: Focus on higher quality companies when buying stocks, bonds, or mutual funds that own either. TIAA Traditional can serve as a measure of safety for your savings, even before you retire.*
The bottom line? Keep planning, stay informed and contact us: Assess your long term plan with a TIAA financial professional to ensure your retirement plan is on track.