Riding the Waves: Smart Moves to Make in Retirement When the Stock Market Is Volatile

Riding the Waves: Smart Moves to Make in Retirement When the Stock Market Is Volatile

Riding the Waves Smart Moves to Make in Retirement When the Stock Market Is Volatile

Retirement is your time to enjoy life on your own terms. But when the stock market swings up and down, it can feel like your financial footing is less steady than you’d like. The key is to stay calm, make smart decisions, and lean on the support you’ve built—especially your financial advisor.

Here are a few things to keep in mind when you’re retired and the market is fluctuating:

1. Stick to Your Plan

If you’ve worked with a financial advisor to build a diversified retirement plan, trust the process. A good strategy is designed to ride out volatility. Your advisor can remind you of the long-term goals and make sure you’re still on track, even if the markets take a short-term dip.¹

2. Review Your Withdrawal Strategy

When markets are down, it’s often best to avoid pulling from your stock investments. Instead, work with your advisor to tap into more stable income sources like bonds or cash reserves. This “bucket strategy” can help you preserve your equities until they recover.²

3. Rebalance When Needed

Market fluctuations can throw your portfolio out of balance. Your advisor can help you review and rebalance your assets to keep your investments aligned with your retirement goals and risk tolerance—without overreacting to short-term changes.³

4. Keep a Cash Cushion

Having 1–2 years’ worth of living expenses in cash or liquid assets can reduce the stress of needing to sell investments in a downturn. Your advisor can help you decide how much cash you should keep and where to hold it.⁴

5. Consider Part-Time Work or Monetizing a Hobby

If the market’s instability makes you nervous about spending, earning a little extra income from a hobby or part-time job can provide peace of mind. An advisor can help you understand how that income fits into your broader financial plan, including tax considerations.⁴

6. Stay Informed, But Don’t Obsess

It’s wise to check in on your finances, but constant monitoring can lead to emotional decision-making. Set regular times—monthly or quarterly—to review your situation with your advisor, who can provide a level-headed perspective and keep you focused on your long-term vision.⁴

Final Thought

Market ups and downs are inevitable, but they don’t have to derail your retirement. With a solid plan and a trusted advisor by your side, you can ride out the waves and enjoy your retirement with confidence and clarity.