Preparing for Retirement in a Volatile Market

For many high earners, retirement doesn’t feel real - until it does. Somewhere between your late 50s and early 60s, that once-distant idea of stepping away from work starts looking less like a dream and more like a logistical puzzle. And if that puzzle comes together during a period of market volatility? The stakes feel even higher.

The truth is, while you can’t control the market, you can absolutely control how prepared you are. The five to ten years leading up to retirement are a crucial window for reducing risk and fine-tuning your strategy so you’re not caught off guard.

Let’s walk through what that looks like - with a steady hand, not a crystal ball.

The Reality of Market Volatility Near Retirement

Volatility isn’t new. It’s part of the market’s natural rhythm, like waves at the beach. Some days are smooth sailing. Others, the tide feels like it’s working against you. But the closer you are to retirement, the more those choppy waters tend to shake your confidence—and understandably so.

You’re no longer investing for “someday.” You’re investing to support your lifestyle in the very near future.

This is where something called “sequence of returns risk” becomes important. That’s just a technical way of saying that if the market takes a downturn right when you start drawing income from your retirement accounts, the long-term effects can be more damaging than if the same dip happened years earlier or later. Timing matters.

Rebalancing Without Overreacting

Protecting your nest egg doesn’t mean avoiding risk altogether. It means knowing which risks to take - and when.

If your current portfolio still looks like it did 15 or 20 years ago, it might be time to make some adjustments. That could mean incorporating more dividend-generating assets, shifting toward lower-volatility investments, or adjusting your mix of stocks and bonds to better reflect your time horizon and income needs.

It’s not about abandoning growth. It’s about creating a portfolio that can support both stability and flexibility.

Building a Reliable Retirement Income Strategy

When markets are strong, it’s easy to think in terms of how much you’ve saved. But in volatile times, the more relevant question becomes: how will you generate income from this?

Mapping out your sources - like Social Security, pensions, investment withdrawals, part-time work, or real estate income - is step one. But the real value comes from knowing how and when to use each source in a tax-efficient way.

A well-structured withdrawal strategy can extend the life of your savings and help minimize your tax burden. Timing matters here, too - especially when it comes to required minimum distributions (RMDs) or choosing when to claim Social Security benefits.

Don’t Overlook Cash Reserves

In retirement, having a financial cushion is just as important as having long-term investments. Keeping 6 to 12 months’ worth of living expenses in accessible cash can be a smart move - especially during turbulent markets.

This buffer lets you avoid withdrawing from your investments at a loss. In other words, when the market dips, you’ve got breathing room. That can go a long way in preserving the long-term value of your portfolio.

Review, Don’t React

Market headlines can be noisy - and often misleading. But those headlines also provide a good reminder to check in on your plan. Are your legal documents up to date? Are beneficiaries current? Do you have the right insurance coverage as you approach retirement?

Use volatility as a prompt to review - not panic.

This is also the time to start syncing up your investment plan with your tax plan and your estate plan. These areas are often treated separately, but they’re interconnected. Overlooking one can create gaps in the others.

Professional Guidance Can Make a Big Difference

Every person’s financial picture is different. You may have business equity, deferred compensation, inherited real estate, or a complex family structure to plan around. And during volatile times, those moving parts can start to feel overwhelming.

That’s where working with a fiduciary advisor can really help. Not to tell you what to do, but to collaborate with you on a plan that reflects your goals, your timing, and your comfort level. Someone to help you organize the pieces, spot the gaps, and coordinate across investments, taxes, insurance, and estate planning.

If you’re approaching retirement and wondering whether your current strategy is aligned with today’s market landscape - or your evolving lifestyle - I’d be glad to take a look with you. It’s not about a hard sell. It’s about thoughtful partnership.