ORLANDO, Fla. — The volatile stock market means many people are noticing big changes to the values of their 401(k) accounts and other investments.

Financial advisors are urging investors not to panic, and their advice differs depending on the investor’s age bracket.

What You Need To Know

  • The volatile stock market means many people are noticing big changes to the values of their 401(k) accounts and other investments

  • Louis Bell, a financial planner with Prudential Advisors, says retired investors, and those close to retiring, should look at their portfolios to make sure they’re insulated from what’s happening with the market

  • For younger investors, Bell says look at the big picture over time

  • Bell discourages mass selling of stocks, but rather investors making adjustments so they're still invested when the stock market rebounds

James Irvine says after he retired, he started trying out clothes and reviewing them online. 

“Most influencers are younger, but the ones who are the most popular are us old folks,” said Irvine.

Irvine doesn’t make a ton of money, but saves money on what he would have to spend on clothes or gifts for his family. He’s on a fixed income, relying on social security and a pension that’s tied to the stock market. And that means what happens with market affects the money he’ll be living off of.

“I try not to look at so many reports, not watch so much TV and figure in the long run it will work out,” said Irvine. “So it doesn’t affect me today or tomorrow, but come next January when they’re determining what the monthly stipend is going to be, that’s when it’s going to affect me. So I have to be careful and hopefully, by that time, things are going to settle out.”

Louis Bell, a financial planner with Prudential Advisors, says retired investors, and those close to retiring, should look at their portfolios to make sure they’re insulated from what’s happening with the market.

“Stabilize that portfolio, look at sectors for instance, utilities, look at healthcare, names and sectors that weren’t so sexy seven, eight, nine ten months ago when the market was high," said Bell. "Areas where you want to get more defensive in, areas you want to get more into your portfolio."

For younger investors, Bell says look at the big picture over time. His advice for investors is to avoid selling off your stocks, and don’t panic over losses in a 401(k).

“It’s the old adage ‘it’s time in the market not timing the market,’ so if you look back historically, go back 80 something years. Go back to 1927 and you can see historically the market is good to investors that stay in the market,” said Bell.

Last year, Irvine and his wife went on several cruises. 

“I was born to cruise,” said Irvine.

But with economic uncertainty about the market, and what money he’ll be bringing in next year, he’s canceled any cruising this year.

“Too much volatility right now, I don’t know what’s going to happen in six months, eight months, a year,” said Irvine.