When financial markets turn turbulent, like we’ve recently seen, it’s easy to lose perspective and make short-term investment decisions you may later regret. Staying on course by maintaining your long-term approach to saving for retirement is just as critical during downturns as it is during rallies. Remember, saving for retirement is a long-term goal intended to help you achieve financial security for your future.

Here are some important things to keep in mind when financial markets are volatile.

Don’t try to time the markets

For example, according to data from FactSet, over the past 40 years, equity markets, as shown by the S&P 500®, have gone up 82% of the time. While trying to time the market may be tempting, nobody can predict when markets are going to reverse course. By attempting to do so, you risk missing the eventual rebound, which can have an unfavorable impact on your longer-term performance. Financial market volatility is not uncommon, and while market declines can seem significant from a short-term perspective, markets have historically demonstrated the ability to recover over the longer term. However, it must be noted that past performance is not a guarantee of future results.

Take the time to review your asset allocation

Asset allocation and diversification are the two most important factors in long-term investing success. Having a diversified portfolio that is appropriate for your time horizon and risk tolerance, and that you can stick with during short periods of market volatility, is a sensible approach for retirement savings and investing. You should periodically review your asset allocation to make sure it’s appropriate based on your age, risk tolerance and expected retirement date. Depending on your individual circumstances, you might wish to consider sitting tight rather than making changes to your portfolio and risking missing out when markets rebound. Ask yourself:

• Has my fundamental outlook changed?
• Has my time horizon (the amount of time before I retire) changed?
• Am I reacting to a short-term event instead of focusing on my long-term plan?

Continue to save for retirement

Reducing your regular retirement contributions during periods of volatility may seem like a good way to protect your portfolio, but it can have the opposite effect. Not only will you save less, but your earnings will also not have the opportunity to compound as much over time. Continuing to contribute to your retirement plan on a regular basis—regardless of market conditions—can reduce risk. This approach, called dollar-cost averaging, is a consistent way to add to your retirement savings, even in declining markets.*

Take advantage of our resources

We recognize that you may be concerned about the ongoing volatility in the stock market. Just remember, we're here to help. If you have questions related to your account, please contact your local Mutual of America representative, or call 800.468.3785, today. You can also visit the Insights and Tools section on mutualofamerica.com, where you’ll find helpful articles and retirement calculators to assist you in planning for your financial future.