What Happens to My IRA if the Stock Market Crashes?

Shawn Plummer

CEO, The Annuity Expert

Like most people, you probably have money invested in the stock market through an IRA or 401k. But what happens to that money if the stock market crashes? This guide will explore what could happen to your investments in a stock market crash and offer tips for protecting your savings.

Want To Retire Efficiently?

Are you planning for retirement and unsure where to begin? Visit our Learning Lab for expert guidance and insights.

Understanding How A Stock Market Crash Affects An IRA

The first thing to understand is that stock prices are volatile. They go up and down, and sometimes those swings can be dramatic. A “crash” is simply a significant drop in stock prices over a short period of time.

In a crash, the value of your investments will go down. But it’s important to remember that this is only temporary. The stock market has always recovered from crashes in the past, and it will likely do so again.

Tips For Your IRA When The Market Crashes

You can do a few things to protect your IRA in a stock market crash. One is to diversify your investments. This means investing in a mix of stocks, bonds, and other assets. That way, if one type of investment goes down in value, the others may not.

Another is to rebalance your portfolio. This means selling some of your investments that have gone up in value and buying more of those that have lost value. This can help you stay on track to reach your long-term financial goals.

Finally, don’t panic. It can be tempting to sell all of your investments when the stock market crashes. But this is usually a mistake. Remember that the market will eventually recover, and selling now will only lock in your losses.

If you need help choosing the right stocks, we recommend the following:

Help Choosing Stocks
The Motley Fool

Consider Fixed Index Annuities To Protect Your IRA From A Stock Market Crash

If you’re looking for a way to protect your IRA from a stock market crash, consider investing in a fixed index annuity. This type of annuity offers guaranteed income for life, no matter what happens to the stock market.

Fixed index annuities also offer the potential to earn interest based on the stock market’s performance. But unlike other investments, your principal is protected from losses.

Next Steps

A stock market crash can be scary, but with the right preparation, you can minimize the damage to your savings. Contact us today for a quote on protecting your investments and securing your financial future. We’ll work with you to create a plan that gives you peace of mind in times of market volatility.

What Happens To My Ira If The Stock Market Crashes

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top