[DESCRIPTION: Prudential logo. On screen text. The market has been very volatile lately. What should I do with my investments in my retirement account?]

[AUDIO:]
[ Music ]

>> I am Tiffany Sturm, a Retirement Counselor with Prudential.

I've been getting a lot of questions about the recent market activity and people are asking me what they should do.

Here's what I tell them.

Markets like these can be incredibly stressful for any investor.

As you may have heard from multiple sources at this point, most investors, especially those with long-term goals, should not move their investments during this time of extreme volatility.

Let me show you why.

[DESCRIPTION: A line graph. The importance of staying invested. Ending wealth values after a market decline. On the horizontal axis, Dates from January 2007 to January 2016 in one year increments. On the vertical axis, fifty to one hundred ninety thousand dollars in twenty thousand dollar increments. Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Copyright 2016 Morningstar. All Rights Reserved. This market is represented by the Standard and Poor's 500. Cash is represented by the 30 day U. S. Treasury bill.]

[AUDIO:]
Here's an example of three investors who invested $100,000 in the S&P 500 in January of 2007.

The first investor, the light blue line, puts their money in the S&P 500 and leaves it alone.

Doesn't touch it.

Even during 2008 when the stock market plummeted and through the recession when their investment was close to half of the original amount, they came out on the other end, January of 2016, with a value of $174,812.

A second investor, the dark blue line, starts out the same way and puts their money in January of 2007.

But this person gets a little nervous at the end of 2008, so they pull their money out of the market and puts it into cash positions.

After a short one-year break, they see the market going back up so they re-enter.

In January of 2016, they have a value of $113,895.

The third investor, the green line, puts their money in January of 2007.

They also get nervous at the end of 2008, so they pull their money out of the market, put it in cash positions.

They think, "I've lost too much.

I don't want to be an investor anymore." So they stay in cash.

Their value as of January 2016 is $54,580.

Which investor do you want to be?

[ Music ]

[DESCRIPTION: Investor A. Stayed Invested In Stock Market. Investor B. Exit Market Reinvested After 1 Year. Investor C. Exit Market Invested In Cash.]


[DESCRIPTION: Answer: Investor A. Stayed Invested In Stock Market.]


[DESCRIPTION: For more resources, visit www.prudential.com/links/about/covid19. This material is intended to provide information only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing this information, Prudential Retirement is not acting as your fiduciary as defined by the Department of Labor or otherwise. If you need investment advice, please consult with a qualified professional. Retirement Counselors are registered representatives of Prudential Investment Management Services L L C (P I M S), Newark, New Jersey, a Prudential Financial company. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (P R I A C), Hartford, Connecticut or its affiliates. P R I A C is a Prudential Financial company. Copyright 2021 Prudential Financial, Incorporated and its related entities. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Incorporated, and its related entities, registered in many jurisdictions worldwide. 1032680-00002-00. NOT01_AN_RE9_02. Prudential.]