The stock market volatility spanning ten weeks because of President Trump’s trade war and tariff policies has made investors hesitant to check their retirement accounts. The S&P 500’s 5-6% year-to-date decline has triggered loss aversion according to Morgan Housel’s The Psychology of Money because losses create more pain than missed gains. MarketWatch consulted financial advisers who believe retirement portfolios continue to demonstrate stability.
The Ohio-based financial advisor David Demming observed that client account losses amount to only 1-2% which stands significantly lower than the 20-40% market declines experienced during past recessions. Planning software employing Monte Carlo simulations indicates no warning signs for retirement portfolios that aim to achieve an 80% success rate until age 100. According to Missouri CFP Rodney Loesch short-term market corrections have little effect on long-term investment plans. Financial advisors Edward Franklin Thomas and Gregory Furer recommend adjusting bond positions to reach 90% success rates and 82% minimum respectively because higher targets have minimal effects on investment outcomes.
Texas financial advisor Brandon Garrett warns clients to avoid selling their investments during the wrong market conditions while recommending fixed income investments and cash reserves. Maryland financial advisor Ryan Salah advises clients to avoid portfolio changes unless their investment goals undergo modifications. Investors find comfort in knowing that well-designed plans will survive this market downturn because health conditions and longevity and spending patterns remain more important than market fluctuations.
