Don’t Let a Down Market Sink Your Ship: Spending Wisely When Times Get Rough
The market doesn’t care that you’re retired. When downturns hit, withdrawing large amounts from your investments can have long-term consequences, even if it feels like “just a temporary dip.”
Imagine you’ve saved diligently for 30 years. Then, the market drops 15%, and you withdraw a big chunk for a new car or vacation. You’ve just locked in those losses.
Dave Ramsey warns, “You don’t lose money until you cash out.” But once you do, that’s money that can’t rebound when the market recovers.
During market downturns, retirees should pause big withdrawals and rely more on cash reserves or short-term savings. A thoughtful withdrawal strategy helps you avoid selling low and gives your portfolio time to recover.
Reflection Question:
How would it feel to see your investments fall during a downturn – would your plan give you peace of mind or cause panic?
Let’s make sure your portfolio is built to weather any market storm. Call our office today for a retirement income review.