Steps to Reduce Retirement Portfolio Volatility

Here’s exactly what we’re telling clients to do given current market volatility…. Keep a fully stocked Emergency Fund. If you feel that a layoff is likely, consider stockpiling excess cash for a transition fund. Keep funds for short term goals out of the market. If you're nearing becoming work-optional, keep a significant portion of your portfolio in high quality shorter duration bonds so that you can draw from your bond portfolio to support income until equities recover. For long term goals, continue to invest for the long term. Market corrections are opportunities to buy equities at a discount, if you will, so continue portfolio contributions as planned. If you are deploying a large amount of cash into the market, consider whether you might want to dollar-cost-average over time. If equity compensation is a large portion of your annual income (which is the case for most of our late-stage private and public company clients), manage your spending so that decreases in your company stock price won't impact your ability to pay your bills. (This is why we often recommend a lower price point for a home purchase than might otherwise be possible to leave a healthy margin of safety for stock price drops.) If you have RSUs vesting on an ongoing basis, we generally recommend that you continue to sell shares as they vest (although there are exceptions - follow whatever Cyndi or I has laid out for you in our planning work together). This is because your RSUs are ultimately a bonus paid in stock, and we do not typically recommend using your bonus to buy your company's stock. Instead, we recommend using your RSUs to fund your goals or support your cash flow. ***This is being shared for informational and educational purposes only. This is NOT investment advice. Every situation is unique so please consult with a professional about your specific situation to see what makes sense for you.***

Bad advice: “Markets are down, just ride it out.”   Better advice:  Don’t just ride it out – do something.   For the record, history shows that maintaining a long-term approach is one of the most effective strategies for navigating market volatility.   However, even if you’re a passive investor You can still be an active planner     Here’s what I’m focused on right now –   1. Harvesting Tax Losses   Realize losses on taxable investments to offset gains now or in the future.   It’s a smart way to create long-term tax advantages from short-term discomfort.   2. Rebalancing Portfolios   Use the downturn to buy low and restore portfolios to their target allocation.   It’s a disciplined way to manage risk and capture future upside.   3. Roth Conversions   Lower asset prices mean lower tax costs to convert traditional IRA dollars to Roth.   This can set up clients for years of tax-free growth.   4. Process and Reinvest RMDs   Required Minimum Distributions don’t stop during a downturn—but reinvesting them thoughtfully can keep that money working for the long haul.   This is an especially great time to distribute from IRAs inherited after 2020 and reinvest the proceeds.   5. Gifting to Kids and Grandkids   Down markets can be a great time for tax-efficient gifting.   Transferring assets when prices are lower can amplify the benefit to younger generations over time with less impact to lifetime exclusions.   6. Reaffirm Goals   Market volatility feels less scary when clients are reminded of their long-term plan, time horizon, and financial progress.   Recenter the conversation on purpose—not panic.   By focusing on what you can control, You turn uncertainty into opportunity And keep your plan moving forward, No matter what the markets are doing

Markets wobble. Fear rises. The smart don’t react, they prepare. Here’s how disciplined investors stay calm and strategic: 1. Diversify Investments ↳ Spread risk across assets ↳ Reduce single-market impact → Balance beats concentration 2. Keep a Cash Reserve ↳ Liquidity for surprises ↳ Opportunity to buy dips → Peace of mind pays 3. Rebalance Portfolio ↳ Lock in gains from strong assets ↳ Restore original risk mix → Discipline protects returns 4. Focus on Quality ↳ Strong fundamentals weather storms ↳ Low debt, reliable earnings → Stability compounds value 5. Avoid Emotional Decisions ↳ Skip panic sales ↳ Ignore hype and noise → Strategy beats instinct 6. Increase Defensive Holdings ↳ Invest in resilient sectors ↳ Dividends keep flowing → Risk managed, income steady 7. Maintain a Long-Term View ↳ Remember history’s recoveries ↳ Focus on compounding, not spikes → Patience outperforms panic 8. Use Dollar-Cost Averaging ↳ Buy steadily over time ↳ Smooth out price swings → Consistency beats timing 9. Review Risk Tolerance ↳ Align with current goals ↳ Adjust comfort with volatility → Stress-free portfolios last Volatility is inevitable. Your reaction determines your results. What strategy keeps you steady when markets shake? Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.

Most Wells Fargo employees haven’t heard of sequence of return risk. But for soon to be Wells Fargo retirees, it can quietly derail even the most well-funded plan. Here’s what you need to know and what you can do about it. Use these strategies to: ↳ Protect your portfolio ↳ Extend your retirement savings ↳ Create a solid withdrawal plan Understand sequence of return risk • Early losses in retirement can hurt your portfolio. • Even if the market bounces back, timing matters. • A few bad years can shorten how long your money lasts. Why it’s a big deal • A solid average return won’t fix early losses. • Bad years at the start can lead to big problems later. • Your retirement income plan needs to be strong from the start. Control your withdrawals • A steady withdrawal rate, like 4%, can help. • Pulling out too much too soon makes it worse. • Keep your spending in check to protect your nest egg. Withdraw with a strategy • Where you take money from matters greatly. • In down markets, tapping the wrong account can hurt. • Avoid unnecessary taxes and boost long-term growth. Diversify your investments • Mix stocks, bonds, and cash for stability. • Diversification smooths out volatility. • It cushions the impact of market downturns. Sequence of return risk is real but manageable. Plan ahead. Make smart choices about withdrawals, allocations, and income strategy. Remember. Retirement planning isn’t one-size-fits-all. ☑ It’s personal. ☑ It’s strategic. ☑ And it’s worth getting right. What part of your retirement income plan feels uncertain right now? Drop it below or shoot me a message.

Volatility is the price we pay for equity like returns over the long run. We've been in a melt up market for a while. That's not normal. Corrections are normal. At Willis Johnson & Associates, as market prices fall, we don't panic, we plan. The world seems scary, but we’ve got a plan in place. We are watching our client's accounts for opportunities to:   1️⃣ Rebalance—We've generally been trimming our overweight equity positions for the last few months (when the market was closer to highs). If we get a big enough drawdown, we’ll rebalance from bonds to underweight equities. 2️⃣ Tax Loss Harvest—We are already taking action to sell holdings that are taxable losses and buy similar positions, staying invested with the goal of saving our clients taxes. 3️⃣ Review Tax Strategies—Our advisory team is connecting with our clients to review whether it makes sense to accelerate tax strategies that could be beneficial in a down market, like Roth Conversions, Backdoor Roth IRA contributions, and funding Solo 401(k). 4️⃣ Getting Excess Cash to Work—We are likely not there yet, but for clients that have excess cash, there may shortly be a wonderful entry point into the market. We're reviewing their balancing sheets and having those conversations. Image Source: A Wealth of Common Sense