The world has been in a panic since the outbreak of coronavirus, causing almost unprecedented market volatility. Some have been quick to compare this to the credit crisis of 2008 that lasted five years. Depending on the duration of the health crisis, I foresee it more closely mirroring the financial events that followed the attacks on September 11, 2001—sharp drop in the market that recovered relatively quickly.
While I do expect a turnaround as soon as the health risks have been mitigated through a vaccine or treatment, it is still important to have a plan in place to protect your financial future, especially if the economic damage of the virus takes longer to resolve than the medical crisis. Here is my advice on how you should react to the current state of the market, based on your retirement schedule.