Retirement should be a time of freedom, not fear. But when markets fluctuate, it’s natural for retirees to feel uneasy. After all, you’ve worked hard to build your nest egg, and seeing it rise and fall with the market can be nerve-wracking. The good news is that with the right strategy and professional guidance, you can weather market volatility and stay on course toward your financial goals. At RetireWise, we help retirees like you take a proactive, confident approach to managing this kind of uncertainty. Here’s how you can navigate market volatility and protect your retirement lifestyle.
Understand That Volatility Is Normal
Market ups and downs are part of the investment journey. While it may feel more personal during retirement, especially when you’re withdrawing funds instead of contributing, volatility is a natural part of the financial ecosystem. Historically, markets have rebounded from downturns and rewarded those who stay the course. That said, understanding how market volatility works doesn’t mean you can ignore it. Instead, it means building a retirement income plan that anticipates how to handle it.
Diversify Your Portfolio
A well-diversified portfolio is one of the best ways to manage risk. By spreading your assets across different types of investments, like stocks, ETF’s, various bond, annuities, cash and alternatives, you can help cushion your savings from sharp declines in any one area. You need to tailor retirement portfolios to your risk tolerance, time frame, and income needs. The right blend of investments can help reduce your risk without sacrificing long-term growth potential.
Maintain a Bucket Strategy
One of the most effective ways to manage market risk during retirement is through what’s called a bucket strategy, where you divide your retirement savings into short-, medium-, and long-term “buckets.” This strategy allows you to ride out market downturns without having to sell investments at a loss to cover daily expenses.
- Short-term bucket: Cash and cash equivalents for 1-2 years of living expenses.
- Mid-term bucket: Conservative investments to replenish the short-term bucket.
- Long-term bucket: Growth-oriented investments for future income needs.
Avoid Emotional Decisions
It’s tempting to make knee-jerk reactions when markets dip, especially when your income feels like it’s on the line. However, selling investments during a downturn could end up locking in losses and can throw your entire plan off track. Our team helps you stay grounded and focused on your long-term goals. We offer consistent guidance and communication so you’re never making financial decisions alone or out of fear.
Work with a Trusted Financial Partner
Volatility doesn’t just come from the stock market. Inflation, rising healthcare expenses, and changes in tax laws can all impact your retirement plan. By proactively planning for these variables, we help you create a flexible, forward-thinking plan that adjusts as your retirement needs evolve.
One of the best ways to navigate market volatility is by working with a retirement-focused advisor who understands your unique needs. At RetireWise, we specialize in helping retirees protect and grow their wealth with smart, personalized planning. We’ll review your current retirement strategy, identify any gaps or unnecessary risks, and recommend adjustments that align with your goals.
Let Retire Wise Help You Stay the Course
Market volatility doesn’t have to derail your retirement. With a thoughtful strategy and expert guidance, you can weather economic storms and continue to enjoy the retirement you’ve earned. Contact RetireWise today to schedule a consultation and learn how we can help you stay confident no matter what the market brings.
Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. Insurance products are offered through the insurance business Retire Wise, LLC. Retire Wise, LLC is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by Retire Wise, LLC are not subject to Investment Adviser requirements. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Diversification does not ensure a profit or guarantee against losses, rather it is a method used to help manage risk. 3027161 – 4/25
