The stock market has recently been experiencing increased turbulence due to various factors, including government policy uncertainty around tariffs, renewed inflationary pressures, and AI skepticism.

You may be wondering what this all means for your investments and how it will affect your retirement plans. While the news headlines can be unnerving, especially for those in or near retirement, the reality is that market volatility is a normal part of long-term investing.

Here are three key points to remember when markets drop:

1. Stay Calm and Stick to Your Plan

During periods of market volatility, you may feel like you need to do something. That’s human nature. You might feel the urge to move to cash to make sudden changes to your overall investment strategy. However, reacting emotionally to short-term market swings can do more harm than good. Withdrawing from the market during a downturn locks in any losses and prevents the financial recovery that would come with eventual market rebounds.

Instead of making a hasty decision, it’s best to lean into the work that you’ve already done. When we design portfolios for clients, we do so with your retirement timeline, risk tolerance, and future income needs in mind. Although the financial landscape may seem unpredictable, negative changes in the markets are already factored into our long-term investment strategy. Staying the course is often the smartest move.

2. Look for Buying Opportunities

While downturns may feel uncomfortable, they can also offer hidden opportunities—particularly for long-term investors. When quality investments are trading at a lower than normal cost, it may be a great time to strategically rebalance your portfolio or invest your excess cash.

If you’re not currently drawing income from all your investments, it may be a good idea to explore taking advantage of lower asset prices to build stronger future returns. When markets are down, stocks are on sale. Think of it as adding a solid asset to your portfolio at a deep discount.

3. Consider a Roth Conversion

Market corrections can also present a unique tax planning opportunity—specifically, Roth IRA conversions. Converting a portion of your traditional IRA to a Roth while account values are temporarily down could reduce the overall tax cost of your Roth conversion. Later, as the market recovers over time, any growth inside your Roth account will be tax-free.This allows you to get more bang for your buck if you’re looking to do Roth conversions. 

This strategy isn’t right for everyone, and it should be carefully weighed against your income, tax bracket, and estate planning goals. But for many investors, it’s a timely tactic worth some consideration.

Final Thoughts

Uncertainty is uncomfortable—but it’s also temporary. Staying disciplined during volatile times is one of the most important ways to protect your wealth and peace of mind. 

Remember that you don’t need to navigate this uncertainty alone. If you’re feeling uneasy or just want to talk through your options, let’s connect. We’re always here to help you make sense of what’s happening and explore ways to turn uncertainty into opportunity.