Boomers Won’t Survive the Bear Market Unless They Do This Today

The stock market has been in freefall recently thanks to rising interest rates and inflation. So what does that mean for Boomers who are retired and done saving?

When you're young, advice for surviving bear markets is fairly straightforward-keep saving and investing and don't let yourself get scared out of the markets.

Retirees, however, are at a much different point in their lives and may not have the time for the patience required to wait out down markets. There's no job income anymore, and retirees shift from an accumulation mindset to de-cumulation since it will be time to make withdrawals from portfolios.

Financial planning is much more complex for someone who is spending down their portfolio rather than building it up.

Monte Carlo simulations can be a great asset because they show a wide range of potential outcomes. However, you only have one shot to get it right in retirement. When you're in the last decades of your life, there isn't time for trial and error.

There is a plethora of advice on saving and preparing for retirement, but not so much for how to live out your years successfully when you've left the workforce for good. If you're lucky you'll have 2-4 decades to invest during retirement, depending on when you choose to leave the workforce.

There have been four bear markets in the last 30 years and five bears in the 30 years prior to that. Those will need to be factored into your financial plan even after retirement. You'll need to be invested in the bull markets in order to cancel out the bear markets.

Bear markets can be painful, but they can also present unique opportunities, so keep your eye out.

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