Pure’s Associate Advisor, Joseph Schaaf, CFP®, AIF®, shares strategies for managing market volatility during uncertain times.
Transcript
Market volatility can feel unsettling, especially when you’re at or near retirement and your savings are front of mind. But here’s the good news: volatility is normal, it’s expected, and there are smart ways to handle it without losing sleep.
Market volatility simply means prices are moving up and down more sharply than usual. It can be triggered by things like rising interest rates, economic news, or global events — and it happens regularly throughout any investing lifetime. But here’s what you need to do to weather the storm.
First — resist the urge to react. Selling when the market dips locks in your losses and means you may miss the recovery. Time in the market has historically outperformed timing the market.1
Second — revisit your asset allocation. A portfolio balanced between stocks and bonds can cushion the impact of swings. If you’re within five years of retirement — or already in it — it may be time to ensure your mix reflects your timeline and your comfort level.
Third — keep a cash cushion. Retirees often benefit from holding a portion of their portfolio in relatively stable, liquid investments to help cover near-term spending needs during market downturns. This approach may help reduce the need to sell stocks or other more volatile investments when markets are under pressure.2
Market ups and downs don’t have to derail your retirement plan — especially when you have a strategy built for them. To learn more about emotional market cycles, emotional investing, and how to keep a clear focus among influential biases, download our free guide on emotional investing.
If recent volatility has you wondering whether your portfolio is still on track, we’d love to help. Reach out to take advantage of our free assessment. In this 1-on-1 meeting, we fully assess your current financial situation and give you the feedback you need to get on the right path to retirement. Even if it’s just for a second look, I highly encourage you to talk to a Pure Financial advisor today, because peace of mind is part of a good retirement plan, too.
Sources:
1. Johnson Investment Counsel. “Why Focus on Time in the Market Vs. Timing the Market.” February 16, 2021.
2. Charles Schwab. “How to Prepare for a Recession: 7 Smart Tips.” March 3, 2026.
Subscribe to our YouTube channel.
IMPORTANT DISCLOSURES:
- Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
- Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
- Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
- Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
- All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
- Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
AIF® – The AIF® designation, administered by the Center for Fiduciary Studies fi360, certifies that the recipient has specialized knowledge of fiduciary standards of care and their application to the investment management process. To receive the AIF Designation, the individual must meet prerequisite criteria based on a combination of education, relevant industry experience, and/or ongoing professional development, complete a training program, successfully pass a comprehensive, closed-book final examination under the supervision of a proctor and agree to abide by the Code of Ethics and Conduct Standards. Six hours of continuing education is required annually to maintain the designation.
