3 Things to Do If Your Investments Are Losing Money Due to COVID-19

4 min read
fairly easy
Stay calm, stay the course, and reassess your position.
It can be daunting to check your retirement account balance right now. The last few months have been a doozy of a time for the stock market, with the Dow Jones Industrial Average experiencing its worst first quarter in history, and the S&P 500 seeing its worst quarter since 2008.

While the market has bounced back somewhat since then, it's still volatile. Your investments may have lost a lot of value over the last month or two during the coronavirus pandemic, and we're not necessarily in the clear just yet. These may be uncertain times, but there are a few things you can do (or avoid doing) to make the best of the situation financially. Here are three of them:

1. Avoid withdrawing your cash if you can

When you check your account balance and see that it's significantly lower than it used to be, it may feel like you've lost loads of cash essentially overnight. But remember that you don't actually lose any money until you sell your investments. So if you can avoid withdrawing your cash, you'll also avoid locking in your losses.

If your financial situation is dire right now, you might feel like you have no choice but to tap your retirement fund to make ends meet. While the CARES Act has made it easier to dip into your savings by waiving early-withdrawal penalties and loosening the restrictions around 401(k) loans, it's still best to avoid pulling your…
Katie Brockman
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