If you’re feeling stressed about what’s happening in the market right now—you’re not alone. Market volatility never feels good, but there is a better way to invest: one grounded in planning, discipline, and long-term thinking. In today’s episode, I’ll share 8 important things to consider as you navigate this market, so you can make confident decisions and stay focused on what truly matters.

Articles, Links & Resources:

Russell 3000 – 20 years of intra year market declines
Annual returns of the S&P500
S&P 500 Daily Returns

Transcript:

452 Buckle Up- Navigating Market Volatility

Announcer: Welcome back America to Sound Retirement Radio, where we bring you concepts, ideas, and strategies designed to help you achieve clarity, confidence, and freedom as you prepare for and transition through retirement. And now here is your host, Jason Parker,

Jason Parker: America. The title of this show is Buckle Up, navigating Market Volatility.

And I had just released a podcast, but everything that’s been unfolding in the markets this last week or two, I thought it would be good to, to bring you some content that’s relative to what’s happening right now in the world. So if you’re feeling stressed about what’s happening in the market right now, you’re not alone.

Market volatility never feels good, but there is a better way to invest a way that’s grounded in planning, discipline and long-term thinking. But before we get into today’s show, I like to start out by renewing our mind, and I’ve got a verse here, force from two Corinthians chapter five, verse seven. For we live by faith, not by sight.

And then something fun for the grandkids. I got a new pen that can write underwater. It can write other words too. My boss said I should dress for the job you want, not for the job you have. So I went to work dressed as Spider-Man. Just a reminder, the articles, links, and resources from today’s show can be found@soundretirementplanning.com.

Just click on episode number 452. Almost 30 years ago, I was living in Alaska and on a flight into Juneau, a place known for tricky landings we were just about to touch down when all of a sudden the engines roared and the plane sharply pulled up. The landing was aborted. There was no warning, just this jolt upward, and people gasped.

I remember this woman sitting behind me. She started to scream like we were on a roller coaster. A moment later, the pilot came over, the speaker and calmly explained, visibility is too poor. We couldn’t see the runway. We’re gonna circle around and try again. The second time, the energy in the cabin had shifted.

It was completely silent. You could feel the tension. The people next to me were holding hands, and when I looked out the window, I saw nothing but thick fog. It was intense. But then we landed. I. Smoothly. The wheels touched down. We slowed to a stop and the whole cabin erupted in applause. It was a moment of joy, relief and gratitude to be safely on the ground.

And let’s be honest, if God wanted us to fly, he would’ve given us wings. Flying doesn’t feel natural. But we do it anyway because it gets us to the places we never could have reached otherwise. I’ve flown probably at least a hundred times since that day. That one stressful landing didn’t stop me from flying because the reward is worth the risk.

I. And it’s the same with investing. There are moments that feel uncertain, even frightening, but if you wanna reach your financial destination, sometimes you have to stay buckled in through a rough approach. Experiencing volatility is part of the journey when investing in stocks. If we want to earn the returns markets offer over time, we must be willing to endure the ups and downs.

Without risk, there would be no reward. In fact, it’s in these moments of discomfort when markets are unpredictable and emotions run high, that long-term returns are often earned. Everyone’s comfortable with risk when the market’s going up, but it’s times like these that truly test how comfortable you are with volatility.

Today I wanna share a few ideas that I believe can help you stay grounded and keep recent market swings in perspective. Number one, remember, investing is a long-term game. Your strategy should be built around years and decades, not days, weeks, or months. Reacting to short-term market swings with big moves can easily derail long-term progress.

Before making a change, ask yourself, am I shifting from one long-term plan to another? If not. You might just be trying to time the market and market timing doesn’t work. Number two, review your financial plan in context. Pull out your plan and revisit it. Does this short-term volatility really warrant changes to your long-term strategy?

Your plan should be designed to weather storms like this. Number three, focus on what you can control. We can’t control the market, but we can control how much we spend, how we behave, and how we respond. Volatility is normal. And here’s a quick look at recent history. Last year on March 28th, 2024, the s and p 500 closed at 5,254.

By April 19th, 2024, it had dropped to 4,967. A 5.47% decline in just a few weeks. On July 31st, 2024, it was at 5,522. Just a few days later, on August 5th, it had dropped to 5,186. It was down 6.08% in a week. I. Yet, despite those dips, the s and p 500 ended 2024, up almost 24% for the year. Volatility is not the exception, it’s the norm.

Number four, yes, this current volatility feels extreme. As I record this, the NASDAQ is down more than 18%. Year to date, the s and p 500 is down more than 13%. But here’s the challenge. Ask your advisor how your actual portfolio is doing year to date. When we meet with clients and review their portfolios, we often find that their reality is far less dramatic than the headlines suggest.

If your portfolio is properly diversified, you’re likely not 100% in the s and p 500 or the nasdaq. And if you are, you may not be working with an advisor who specializes in helping people retire with confidence. On this podcast, I’ve talked about why global diversification matters and how concentration in just a few large companies like the Magnificent Seven can increase risk.

And I’ve also shared why high quality fixed income can serve as a stabilizing force during times like these. It’s one thing to understand the principles that I teach on Sound Retirement Radio. It’s another to apply them. The key is not just learning, but making sure you’re implementing what you learn in a way that supports your long-term strategy.

Number five. Consider rebalancing. Has your portfolio drifted from your intended allocation? If so, it may be time to rebalance. That usually means selling what’s done well and buying what hasn’t. Something that rarely feels right. Think of it this way. You’re trading in what’s popular to buy what’s on sale, or it’s like buying a winter coat in the middle of summer or picking up Christmas lights the week after Christmas when they’re 50% off.

Rebalancing is about buying low and selling high, but emotionally it often feels like a mistake. Number six, if the news is stressing you out, turn it off. The nightly news is not a good place to make long-term investment decisions. Their business model depends on our attention and fear sell. They’re not concerned with our long-term financial wellbeing.

They’re focused on ad revenue and engagement. Social media is even worse. I. Pause for even a moment on a negative headline and your feed will start serving up more of the same. The algorithm doesn’t care about truth or perspective. It just wants you to keep scrolling. Our brains are wired for survival, not for investing.

That’s why fear grabs our attention so easily. But fear-based decisions rarely lead to good long-term outcomes. Especially when it comes to building wealth. Number seven, extend your time horizon. You wanna think in decades, not days. Where do you see yourself five years or 10 years from now? Will you even remember today’s headlines?

Chances are you don’t even remember the volatility that I talked about in April of last year. Dimensional has a chart that I’ll include in the show notes that shows annual returns for the Russell 3000 Index from 2005 through 2024 every year, had some kind of intrayear decline. Some as much as 49%, but 17 of those 20 years ended positive.

Again, volatility is normal. Number eight, have a retirement income strategy that puts time on your side. One of the biggest risks you face when entering retirement is what’s known as sequence of returns risk, the risk of the market dropping just as you began drawing income. Negative returns early in retirement can have a Atlassian impact, even if long-term market performance is strong.

That’s why we designed retirement income strategies that align time with risk. The money you need in the near term is allocated conservatively. The money you won’t need for many years is invested for long-term growth. This structure helps reduce the temptation to react emotionally when markets are volatile and gives your portfolio time to recover because the greatest threat to your retirement isn’t just market volatility.

I. It’s how you respond to it. Investor behavior driven by fear or euphoria is often the biggest determinant of long-term success or failure To support this approach, we just released an exciting new update in the retirement budget calculators bucket strategy, and you now have more flexibility and control than ever before.

You can choose how many buckets you want. Define how much should be in each bucket. Assign specific accounts to specific buckets, so whether you prefer a two bucket barbell strategy or a three bucket system with five years of withdrawals in each or a more customized setup, like four buckets with varying timeframes.

You now have the tools to design a strategy that works for your unique needs and preferences. This update is all about putting you in control of your plan with a structure that helps reduce uncertainty and promote long-term confidence no matter what the markets are doing. If you’ve just retired or you’re getting ready to retire, make sure you’re working with a team that specializes in this phase of life.

Retirement planning isn’t about chasing returns or trying to out guess the market if you’re going it alone. It can get lonely and big. Financial decisions in isolation may not lead to the best outcomes. There’s wisdom in getting guidance as the proverb goes. Plans fail for lack of counsel, but with many advisors, they succeed Having the right team around you, people who understand retirement, who know how to build a plan and help you stick with it can make all the difference.

A good financial advisor doesn’t recommend individual stocks because that’s uncompensated risk and they’re not market timers either trying to guess the perfect moments to get in and out of the market. Jack Bogle was the founder of Vanguard, and he once said that in his 50 years in the investment industry, he didn’t know a single person who could consistently time the market successfully.

In fact, he didn’t even know anyone who knew someone who could do it. You wanna work with a team that believes in long-term planning. People who stay focused on the destination and don’t get distracted every time a squirrel runs across the road, a good advisor isn’t trying to outsmart the market.

They’re helping you capture the returns the market has historically offered to disciplined long-term investors. It’s about having a strategy that gives you confidence and peace of mind through the good times and the bad. At the end of the day, we believe that the best path forward is simple. Make a plan.

Implement it and stick with it. Jumping in and outta the market based on headlines turns investing into gambling. And if you’re looking to go gambling, Las Vegas might be a lot more fun. Let’s focus on what really matters, building a solid retirement plan and an investment strategy design for the long run.

Announcer: Thank you for tuning in to Sound Retirement Radio. For articles, links and resources from today’s show, visit sound retirement planning.com. If you enjoy the podcast, share it with a friend and give us a five star review. Ready to kickstart your retirement planning head over to retirement budget calculator.com.

Need assistance with investment management. Explore our services@parkerfinancial.net. Information and opinions expressed here are believed to be accurate and complete for general information only and should not be construed as specific tax, legal, or financial advice for any individual and does not constitute a solicitation for any securities or insurance products.

Please consult with your financial professional before taking action on anything discussed in this program. Parker Financial, its representatives or its affiliates have no liability for investment decisions or other actions taken or made by you based on the information provided in this program. All insurance related discussions are subject to the claims paying ability of the company.

Investing involves risk. Jason Parker is the president of Parker Financial LLC, an independent fee-based wealth management firm. Located at 9 2 3 0 Bayshore Drive Northwest Suite 2 0 1, Silverdale, Washington. For additional information, call 3 6 0 3 3 7 2 7 0 1 or visit us online@soundretirementplanning.com.