By Andy Vogel
It’s natural to be concerned about market volatility. Recent market downturns—partially driven by changes to international trade policy and debates on tariffs—have left many retirees worried about their financial status. Media coverage has delivered varying reports that may make the situation even more confusing to everyday retirees and investors.
What’s the reality? History tells us that market volatility can be the result of a number of events. While these times are driven by a unique kind of chaos, there’s every reason to believe the stock market is capable of a rebound. How can you stay confident until that happens?
Where Does the Market Stand?
Market volatility has been especially pronounced since the new presidential administration began in late January. The Dow Jones Industrial Average has slipped by 4.5% since January 20. The NASDAQ has dropped almost 12.5%, and the S&P 500 has declined by over 7.2%.
Those numbers may pop some eyes. However, it’s important to keep them in the proper context. Although current figures may look bleak, the stock exchange went into a bull market about two years ago. Typically bull markets last between three and five years. According to that historical frame, this bull market is only about halfway through.
Only twice in the last century has the market gone through a longer downturn. Granted, one period—the Great Financial Crisis—is fairly recent, having stretched two years between 2007 and 2009. The other, as you might expect, was the Depression of the 1930s. Both downturns lasted due to systemic issues in the commodities market and the global banking network.
In those cases, banking reforms took a while to take hold—but they did. New regulations and legislation were put in place to rescue financial institutions and correct their trajectories. While it’s true that many retirement funds were driven down in the Great Financial Crisis, very few were wiped out completely.
Furthermore, the Employment Benefit Research Institute determined that retirement fund losses in that era were more driven by factors like account balance sizes, age, and job history than by the crisis itself.
A Call for (Guarded) Optimism Amid Market Volatility
It’s fair to be cautious with your retirement funds in times like these. But despite the mania, the stock market is working as it should.
Monica Sonnier Bucciarelli, a fixed-income strategist with our partner TownSquare Capital, has been hearing from a lot of clients who are nervous and thinking about selling off their stocks. She reminded us that investors often have short memories, and sometimes it’s simply because they haven’t been in the market long enough to see how it tends to behave over time.
She doesn’t see any signs that the market is on a long-term decline. Sure, the volatility we’re seeing is driven by factors like taxes, tariffs, and the uncertainty around them, but Monica pointed out that the market was priced well when the new administration took office. Even with the added uncertainty, there’s a good chance this is just another regular market correction.
Monica’s view is supported by history; every new presidential administration from Clinton to Obama faced similar market struggles in their early months. While it feels different right now, this pattern is actually fairly normal. As she likes to remind us: “Nothing is ever as good or as bad as you think it will be.”
Keeping Calm in Times of Financial Turmoil
Market volatility can take a toll on retirees’ nerves. As tough as it can feel, that’s also a sign that modern investors are tuned into what’s happening. That’s a positive thing. From what we see, as long as that awareness exists, it’s easier to endure standard market corrections.
RetireWise Tax and Wealth Advisors, Inc. has seen our share of market changes and rightfully concerned retirement account holders. We can help you steer through these uncertain times with our Your RetireWise Path™ process to help us understand your unique journey and craft a plan that reflects it.
With our Your RetireWise Path™ planning process, we build three custom-tailored segments for clients, creating strategies for right now, a few years out, and for the long term. We call this planning for “Now, Soon, and Later.”
Our “Now” approach provides clients with the tools they need to take care of immediate concerns (like having an emergency fund). “Soon” planning addresses needs that are likely to appear within a few years. “Later” strategies are designed to generate steady, predictable investment income that can grow in spite of short-term fluctuations that may arise in the market, addressing retirement needs and planning to develop a lasting legacy.
To start building (or updating) your path, call (785) 228-1234 or contact us online here.
About Andy
Andy Vogel is a retirement planner at RetireWise Tax and Wealth Advisors, Inc., serving clients in Topeka, Kansas. Having grown up around the financial industry, Andy was inspired by his father’s dedication to serving clients—planting a desire early on to one day make a meaningful impact in people’s lives as a financial advisor himself. He is passionate about helping individuals and families build financial stability, giving them the freedom and confidence to pursue the life they desire.
Before joining the financial services industry, Andy spent 20 years working with Young Life, a ministry focused on mentoring and walking alongside young people. That experience shaped his heart for people and his desire to build lasting, trust-filled relationships—values that continue to define his work today.
For Andy, the most fulfilling part of his work is building trusting relationships with clients and developing all-encompassing financial plans that bring clarity to their entire financial world. He is driven by a desire to serve his clients with excellence and to continuously grow alongside the incredible team at RetireWise.
Outside of work, Andy’s greatest joy is spending time with his wife, Angelyn, and their three children, Lincoln, Ellie, and Addie. Coaching his kids’ sports teams over the years has been one of his most cherished experiences. He is also deeply involved in his church, Fellowship Bible Church, and continues to support the ministry of Young Life. A lifelong learner, Andy enjoys reading and exploring new ideas that help him grow personally and professionally.