{"id":277588,"date":"2025-10-04T17:00:13","date_gmt":"2025-10-04T17:00:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/277588\/"},"modified":"2025-10-04T17:00:13","modified_gmt":"2025-10-04T17:00:13","slug":"heres-how-to-avoid-the-biggest-mistake-retirement-savers-make-during-a-market-downturn","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/277588\/","title":{"rendered":"Here\u2019s How To Avoid the Biggest Mistake Retirement Savers Make During a Market Downturn"},"content":{"rendered":"\n

What goes up must come down again: This old saying applies to almost every area of life, and the stock market<\/a> is no exception. If there\u2019s one constant in the market, it\u2019s change \u2014 sometimes thrilling, sometimes alarming \u2014 especially if you\u2019ve been saving for retirement<\/a> and have a nest egg you want to protect. A volatile market can conjure images of smashed eggs.<\/p>\n

For You: Here\u2019s Why You Might Want To Invest Your Retirement Savings in a Roth 401(k)<\/a><\/strong><\/p>\n

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If anyone understands those anxieties \u2014 and how to overcome them \u2014 it\u2019s Kourtney Gibson<\/a>, CEO of TIAA Retirement Solutions<\/a>. While you can\u2019t control the grand ups and downs of the market, \u00a0Gibson notes that there\u2019s more within your control than you might think \u2014 starting with your reactions.<\/p>\n

When headline after headline portends market disaster and, to be honest, the market reports don\u2019t look great, either, panic seems like a natural reaction. But reacting out of emotion \u2014 for example, pulling your money out of the market<\/a> altogether \u2014 is counterproductive to your goals of building secure retirement savings, according to Gibson. She\u2019d rather you avoid playing Nostradamus and stick to the plans you\u2019ve already set in motion.<\/p>\n

\u201cThe biggest mistake retirement savers make during market downturns<\/a> is letting short-term emotions override long-term strategies,\u201d she said. \u201cMarkets will rise and fall, but investors who attempt to predict these shifts often end up worse off than those who stay anchored to their long-term financial plans.\u201d<\/p>\n

For Gibson, the most successful investors<\/a> realize that being patient and consistent, even in turbulent times, tends to yield greater returns. To keep from being blown about by storms of anxiety, she recommends having a written, defined investment plan for your retirement savings based on your personal goals.<\/p>\n

\u201cRather than altering your carefully crafted investment plan in response to fleeting market movements, maintain focus on your long-term objectives \u2014 despite the temptation to act on market headlines or make decisions based on fear,\u201d she said.<\/p>\n

Staying calm doesn\u2019t mean doing nothing in response to volatility. Far from it. Gibson wants you to consult a trusted financial advisor<\/a> (and if you don\u2019t have one, she suggests now\u2019s the time to find one) to gain clarity into how various risks can impact your portfolio or limit your ability to save. Think of it as a stress test for your investments: How would your current asset allocation perform across different market scenarios?<\/p>\n

Story Continues <\/p>\n

\u201cBy identifying vulnerabilities now, you can adjust your asset allocation, spending plans, and protection strategies while markets are favorable rather than being forced to make difficult decisions under pressure during volatility,\u201d said Gibson.<\/p>\n

You and your advisor can also treat market volatility<\/a> as a chance to assess your overall financial plan. Ask whether your asset allocation still matches your risk tolerance, whether this is the right time to implement guaranteed income strategies and how much risk you can realistically take on.<\/p>\n

Read Next: I Help People Retire Every Day \u2014 Here\u2019s the Most Common Retirement Mistake People Make<\/a><\/strong><\/p>\n

Not only does Gibson want you to keep your cool during a market pullback, she encourages you to see volatility as an opportunity \u2014 particularly if you\u2019re new to investing<\/a>.<\/p>\n

\u201cWhen stock prices fall, your regular retirement contributions are essentially purchasing investments at a discount,\u201d she said. \u201cThis is particularly powerful for younger investors with longer time horizons who can benefit from decades of potential growth. It\u2019s never too early to start saving for retirement when you have the power of compounding on your side.\u201d<\/p>\n

Gibson also wants you to take advantage of the calmer cycles in the market to build a resilient portfolio. After all, what goes up will, eventually, come back down \u2014 but preparation now can soften the landing.<\/p>\n

\u201cEnsure your portfolio has appropriate diversification across and within asset classes that can withstand different market conditions,\u201d she said. \u201cBecause it\u2019s not a matter of if there will be more market volatility, but when.\u201d<\/p>\n

One way to mitigate market risks \u2014 and your anxieties \u2014 is to integrate more reliable sources of income into your retirement plan. Gibson is a fan of fixed annuities<\/a>, describing them as a dependable retirement paycheck.<\/p>\n

\u201cWhether you live to 73 or 103, lifetime income provides a minimum monthly payout for as long as you live and can still protect your beneficiaries if you die early,\u201d she said. \u201cHistorically, fixed annuities have been lumped into the fixed income category because many of the underlying investments are bonds. However, fixed annuities perform quite differently from bonds or bond funds, especially when interest rates are rising or falling.\u201d<\/p>\n

She\u2019s keen on fixed annuities from highly rated insurance firms because, unlike bonds and bond funds, whose market values decline as interest rates rise, they can offer a steady return and principal protection when held as intended, subject to the insurer\u2019s claims-paying ability. (Fees, surrender charges and product features vary, so review details before you buy.) This dependability can work wonders for your peace of mind.<\/p>\n

\u201cKnowing your essential expenses in retirement will be covered regardless of market performance creates the emotional foundation to weather any market storm,\u201d she said. \u201cWhen you\u2019ve protected what matters most, temporary market fluctuations become much easier to endure.\u201d<\/p>\n

Kourtney Gibson is well aware that market volatility is scary, particularly when you feel like your security in retirement is on the line. But you don\u2019t have to be a genius at predicting market movements to come out on top \u2014 the advantage belongs to people who know how to use market conditions (yes, including downturns) within their strategies.<\/p>\n

\u201cMarket declines are usually temporary, but the advantages gained from strategic moves made during periods of calm can be permanent,\u201d she said. \u201cYour goal isn\u2019t to perfect market timing, but to build a resilient retirement strategy<\/a> that performs across all market environments.\u201d<\/p>\n

This article is part of GOBankingRates\u2019\u00a0Top 100 Money Experts<\/strong>\u00a0series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own?\u00a0Share it on our hub<\/a><\/strong>\u00a0\u2014 and you\u2019ll be entered for a chance to win $500.<\/p>\n

This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.<\/p>\n

More From GoBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: Here\u2019s How To Avoid the Biggest Mistake Retirement Savers Make During a Market Downturn<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"What goes up must come down again: This old saying applies to almost every area of life, and…\n","protected":false},"author":3,"featured_media":277589,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,11560,143527,143528,135,700,696,2437,67,132,68,21677],"class_list":{"0":"post-277588","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-gibson","10":"tag-kourtney-gibson","11":"tag-market-downturns","12":"tag-markets","13":"tag-retirement","14":"tag-retirement-savings","15":"tag-stock-market","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us","19":"tag-volatility"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115316970790464600","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/277588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=277588"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/277588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/277589"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=277588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=277588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=277588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}