Worried Market Volatility Will Hurt Your Retirement Savings? Here's the 1 Important Thing to Know.

If you've been keeping tabs on the stock market lately, the numbers may be pretty discouraging. Even since the Iran conflict erupted, markets have been volatile. And if you were to check your IRA or 401(k) balance now, you may see a lower number on screen compared to the start of the month.

It's natural to worry about your retirement savings at a time like this. But here's one key thing you need to know.

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Market volatility is not unusual

It's easy to worry when you see your investment portfolio lose value. But try to remember that as frustrating and scary as it is, stock market volatility is actually normal.

Now if you're in retirement and are using your savings, it's important to adjust your withdrawal strategy when markets don't cooperate. That could mean cutting spending temporarily or, if possible, selling assets whose values haven't gone down for money. If you have a cash reserve, now may be a good time to use some of it, too.

But if you're not yet retired and therefore aren't tapping your savings for income just yet, there's a lot less to be concerned about -- especially if you still have many working years ahead of you. As long as you don't sell off investments in a panic, your portfolio is very likely to recover over time.

The best thing to do is nothing

You may be inclined to check your IRA or 401(k) plan balance often at a time when stock markets are shaky. Don't. Really. There's no reason to.

If you keep checking your balance from day to day, all you're going to do is give yourself a reason to be anxious. And think about it this way. If your balance could fall substantially overnight, it could also rise substantially overnight. So why put yourself through the torture of seeing those falls?

In fact, the absolute best thing to do during a stock market downturn is nothing.

Remember, you only lock in losses if you sell stocks at a low point. If you keep your portfolio intact, temporary losses tend to resolve themselves.

Not only that, but you shouldn't let recent market volatility stop you from continuing to fund your IRA or 401(k). If anything, buying stocks when they've recently dipped is a good thing.

It's not easy to be a retirement saver and investor during periods when the market swings wildly. But if you pledge to leave your portfolio alone and stay the course, you'll put yourself in a much stronger position to get through this blip -- and others like it -- unscathed.

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