Hi, it’s Devin Choules, founder and CEO of Choules Financial, and on this week’s Life of Yes, we’re talking about a big question:
Should retirees be worried about market downturns?
The obvious answer is: yes—but it’s more nuanced than that.
Today, we’re going to explore why understanding market cycles, having the right plan in place, and preparing emotionally and strategically can help you move through volatility with greater confidence and clarity.
If we do our planning ahead of time—if we understand how the market moves and build a written retirement income plan and investment strategy—we’re far less likely to make emotional decisions that harm us in retirement.
Let’s start with a visual: here’s a chart that shows major market drops—Black Monday, the global financial crisis, COVID-19, tariff scares, and more. While you can’t see all the data from here, the message is clear: markets can fall fast. On Black Monday, we saw a 24% drop in one day, followed by another 16% the next. During COVID, we saw nearly a 14% drop in just two days.
But here’s the key: recovery comes.
After Black Monday, it took 481 days to get back to even.
After the COVID crash, it took just 50 days to recover.
The takeaway? Market downturns happen—but so do recoveries. And if we have a minimum of five years’ worth of income protected, history shows that markets almost always bounce back within that time frame.
So instead of reacting emotionally to volatility, we need a plan. When we have a written retirement income plan and a clear investment strategy, we can stay focused on long-term goals rather than short-term panic.
This is what strategic investors do.
They don’t guess. They plan. They know where their money is, what it’s doing, and why it’s there. They don’t just hold a mix of stocks, bonds, and mutual funds to “feel diversified.” They understand what role each piece plays.
If you’re still working, continue contributing. Dollar-cost averaging works. Buying at all levels of the market—especially during dips—often leads to better long-term results than trying to time the market.
And let’s clarify what real diversification means.
It doesn’t mean spreading yourself thin across 40 positions. That’s de-diversification. Real diversification means aligning your assets across Safety, Income, and Growth—based on your needs and where you are in life.
If you understand what your money is doing—whether it’s generating income, offsetting inflation, or leaving a legacy—you’re more likely to stay invested during hard times.
And staying invested is key.
If you’re within five years of retirement, your portfolio may need to be less vulnerable to volatility. Start thinking about that now—not the day you retire. If you’ve already saved enough, or if legacy isn’t a big concern for you, it might be time to reduce risk and focus on income and healthcare instead.
Because remember: a retirement plan isn’t just about investments. It’s about stacking your five pillars together:
Investment plan
Income plan
Tax plan
Healthcare plan
Estate plan
And when all five are working together, you increase the likelihood that your vision becomes your reality—not just a hope.
Income-generating investments are generally less volatile, which is helpful when you’re relying on them to fund your lifestyle. When we know where our money is coming from, we can sleep at night—no matter what the headlines say.
Yes, the market has always come back—but only those with a plan have the confidence to wait it out.
Volatility is normal, not new. And if you can’t handle it emotionally, you probably shouldn’t be in the stock market—or at least not without help. There are tools and vehicles available to help manage risk and protect principal.
But what matters more than any of that is discipline and perspective.
Today’s media headlines are designed to trigger fear. “Clickbait” is real. And it’s why so many people make costly emotional decisions. But if you’ve taken the time to plan—and written it down—you don’t have to react.
Because if it’s not written down, it’s just a hope. If it is written down, it’s a plan.
And remember, your portfolio adjustments should be thoughtful—not emotional. They should come from a conversation about your goals, your timeline, and your needs—not from the news or market noise.
We’re here to guide you through uncertain times.
When life happens—buying a car, the roof leaks, a parent passes away, a child needs financial help, you inherit land—we’re here to model it, plan it, and show you what steps to take.
Are you 100% sure all five areas of your plan are covered?
Because many people think they’re fine because they have “an investment guy.” But as we’ve said before: investments are just one-fifth of your retirement plan.
Here’s what a complete plan includes:
Investments that support income
Income that drives lifestyle
A proactive tax strategy
A clear plan for rising healthcare costs
An estate plan that ensures more goes to loved ones, and less to the government
That’s how we help people live their Yes to Yes.
Thanks so much for tuning in to this week’s episode. Be sure to like, comment, subscribe, and click the bell so you never miss an update. We’ll see you next time!
