The Resiliency of a Good Financial Plan in Retirement

The big headlines of 2025 have been less than reassuring so far. A nascent trade war has led to volatility in the investment markets. Economists are warning of higher inflation and a slowing economy. It’s more likely than not that retirees are nervous about the safety of their nest eggs. But one truth remains amid the worrisome news: A financial plan, like those constructed by your wealth advisor, is built to withstand exactly these kinds of periods.

Market volatility isn’t new. In fact, it’s one of the only certainties in investing. U.S. stock market corrections of at least 10% occur about every two years¹ on average, and bear-market declines of 20% or more take place about every five years.² A wealth advisor knows this, and will build your plan with the “certainty of uncertainty” in mind—providing a framework that accounts for ups and downs, and keeps you on track to achieve your goals.

Why Tweaking Now Is a Big Mistake

When markets tumble, the urge to “do something” can be powerful. But making big changes to your portfolio—or worse, trying to time the market—can be disastrous, especially in retirement. Market timing is the attempt to move in and out of investments based on predictions of whether they will rise or fall in the short term. But history shows that even professionals rarely get this right. The risk? Missing just a handful of the market’s best days can cut your returns dramatically, and those best days often come right after the worst ones. This is called the sequence of returns risk and can cripple a carefully structured plan. For retirees, the stakes are even higher. If you sell during a downturn and miss the recovery, you may not have the time or earning power to rebuild your savings. This can put your life goals—travel, helping family, or simply enjoying your golden years—at risk.

Don’t Get Emotional

Behavioral finance teaches us that our instincts can betray us in volatile times.³ Fear and anxiety can drive us to sell low and buy high—the exact opposite of what leads to long-term success. The most successful investors are those who pause and reflect: Are my decisions based on fear, or on the evidence and strategy built into my plan? One way that a financial plan helps keep investors calm is by ensuring that there will be adequate cash flow to cover expenses during rough markets. That allows retirees to leave their longer-term investments to earn expected returns over time. And those potential returns can be the key to funding your plans and ensuring your portfolio grows at a rate that meets your financial goals.

Keep Calm and Ignore Your Portfolio

One of the best pieces of advice for retirees is simple: Don’t check your portfolio every day. Watching the market’s every move can fuel anxiety and lead to rash decisions. Remember, downturns historically have been temporary. While no one can predict the exact timing or shape of a recovery, the market has always bounced back from crises, including the dot-com crash, the 2008 financial crisis and the COVID-19 pandemic. All felt world-changing in the moment, but in every case, the market eventually recovered and moved on to new highs. In the case of the pandemic downturn in 2020, the rebound occurred in just four months—the fastest market recovery in 150 years.⁴ Those who stayed invested were rewarded; those who panicked and sold missed out on the rebound.

What Should You Do Now?

If you worked with a wealth advisor to build a diversified portfolio, it’s designed to handle volatility. Trust the plan. Focus on achieving your long-term goals. The market’s path is never straight, but patience and discipline have always paid off. And don’t hesitate to lean on your wealth advisor. A trusted financial professional can help you stay grounded and stick to your plan, even when emotions run high. And that will give you the best chance to achieve your goals and enjoy the retirement you’ve worked so hard for. Let the plan do its job—so you can focus on living your life.