I recall a discussion with a colleague in late 2007 about retirement. He was preparing to make that transition in a couple of years. Unfortunately, the stock market started to slide when he was about a year away from retirement.
The market crashed on September 29, 2008. The decline continued and, by the end of 2008, Dow was down to 8,776. Naturally this dramatic decline in the market created serious challenges for people who were close to retirement and had most of their pension in stocks.
We have now entered August of 2017. August and September have historically been the worst months for stocks. This year, increasing international tensions and the potential for a serious conflict between U.S. and North Korea will add further uncertainties to the financial markets.
Although no one can predict the future, it is important that businesses educate their employees on the basics of risk management when it comes to their financial portfolios. HR departments can and should play an important role in preparing their employees to weather all types of market conditions. Ultimately, we are all responsible for educating ourselves on how to best navigate through turbulent and challenging times.