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As retirement approaches, financial stability and long-term security become a primary focus. The ongoing debt ceiling debate in the United States may understandably leave some of those nearing retirement feeling uncertain about their future, at least in the near term. While short-term events such as the debt ceiling debate can be unnerving, it's important to maintain a long-term perspective and stick with your plan when uncertainty arises from time to time. Here are a two recent examples demonstrating market resilience during prior debt ceiling dilemmas... 2011 Debt Ceiling Concerns: During the 2011 debt ceiling debate, the market initially declined as the US had its credit rating downgraded for the first time by a major credit rating agency. However, after the initial turmoil, the S&P 500 index recovered and ended the year in 2011 approximately flat. The following year, the S&P 500 Index was positive by about 13% in 2012. As usual, those who stayed the course through uncertainty and didn't try to jump in-and-out of the market benefited nicely from the recovery. 2013 Debt Ceiling Debate: In 2013, another debt ceiling debate generated short-term volatility in the stock market. Despite the initial turbulence, the S&P 500 again rebounded nicely and ended the year positive by about 30%. The strong recovery following the initial uncertainty in 2013 illustrates the importance of sticking with your long-term plan through short-term uncertainty. 78 Debt Ceiling Raises or Extensions Since 1960: Since 1960, US Congress has either permanently raised or temporarily extended the debt ceiling 78 times. Debt ceiling debates have happened many times before. Since 1960, the S&P 500 has delivered an average annual return of approximately 10% per year. Investors have benefited nicely by simply staying the course through the ups and downs that occur from time to time for a variety of reasons, including debt ceiling deadline negotiations. Summary: While the debt ceiling debate may stir short-term market uncertainties, historical data consistently supports the fact that staying the course with your long-term retirement plan will on average result in better outcomes compared to jumping in-and-out of markets based on short-term events like debt ceiling deadlines. By maintaining a well-organized retirement plan and avoiding the temptation to let short-term events alter your long-term plan, you can keep your retirement plan on track and protect your financial security for many years to come. Want To Discuss This Individually? 1 - For clients: Call or email me any time as always. 2 - For non-clients: Complete the form on the website to request a retirement planning consultation: This is article is for informational purposes only and should not be considered as tax or legal advice. Advice is only provided after entering into an Advisory Agreement with the Advisor. See other disclosure here: Disclosures

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