How Market Volatility Affects Your Retirement—and What You Can Do About It

If you’ve checked your retirement accounts lately and noticed some ups and downs, you’re not alone. Market volatility—those sudden shifts in stock prices—can feel unsettling, especially when your retirement is on the horizon. But volatility is also a normal part of investing, and with the right strategy, it doesn’t have to derail your plans.

At Bradford Financial Advisors, we help clients navigate uncertain markets with confidence by focusing on what they can control—and planning around what they can’t.

Understanding Market Volatility

Market volatility simply refers to how much prices fluctuate over time. It’s driven by many factors: economic reports, global events, interest rates, or even investor emotions. While it’s easy to equate volatility with risk, they aren’t the same thing.

Short-term dips may cause anxiety, but history shows that markets tend to recover and grow over the long term. The key is building a plan that allows you to weather those temporary storms without jeopardizing your future goals.

Why Volatility Feels Worse Near Retirement

When you’re decades away from retirement, volatility can actually work in your favor—market dips give you opportunities to buy shares at lower prices. But as you approach or enter retirement, the stakes change.

Here’s why:

• You have less time to recover from market downturns.

• Withdrawals during declines can permanently reduce your portfolio’s growth potential (known as “sequence of returns” risk).

• Emotional decisions—like selling during a downturn—can lock in losses instead of allowing time for recovery.

That’s why having a balanced, tax-smart withdrawal and investment plan becomes crucial.

How to Protect Your Retirement Plan from Market Swings

1. Diversify Across Asset Classes

A well-diversified portfolio helps smooth the ride. By spreading your investments among different types of assets—stocks, bonds, and alternatives—you reduce the impact of any one area’s decline.

2. Keep Enough Cash for Short-Term Needs

Having a few years of income needs in cash or low-volatility investments can prevent you from having to sell growth assets when the market is down.

3. Rebalance Regularly

Over time, market movements can throw your portfolio out of alignment. Rebalancing ensures your mix of investments still matches your risk tolerance and goals.

4. Avoid Emotional Investing

Selling out of fear or trying to “time the market” rarely works. Staying disciplined and relying on a clear plan helps prevent costly mistakes.

5. Work with a Fiduciary Advisor

A fiduciary advisor—like those at Bradford Financial Advisors—is legally required to put your best interests first. That means helping you make rational, research-based decisions, not emotional reactions.

Turning Volatility into Opportunity

Volatility isn’t just a challenge—it can also create opportunity. Down markets allow disciplined investors to:

• Buy quality assets at lower prices

• Harvest tax losses to offset future gains

• Refocus on long-term goals rather than short-term swings

At Bradford Financial Advisors, we help clients use volatility strategically as part of a comprehensive retirement and tax plan.

Final Thoughts

Market volatility is inevitable—but financial stress doesn’t have to be. With the right mix of diversification, patience, and guidance from a fiduciary advisor, you can stay on track toward your goals no matter what the headlines say.

Ready to see how your retirement plan holds up against market swings? Contact Bradford Financial Advisors today for a review of your investment and withdrawal strategy.

Investment advisory services offered through HBW Advisory Services LLC.