Planning for what to do in a bear market is important when you’re in or near retirement and don’t have the luxury of time to rebuild your savings.

You may have heard that you should buy and hold though a bear market. After all, the conventional wisdom is the market always comes back. While that has been true, it often takes years. The market didn’t get back to even after the 2008 recession until 2013. After the crash of 1929 and The Great Depression, the market took twenty-five years to recover.

If you’re close to retirement, would you want to delay your retirement to regain that loss?

And if you’re retired and living off your investments, what would happen if they dropped 57% like the stocks on S&P 500 Index did in 2008? Could you cut your cost of living in half while you waited for the market to come back?

Bear markets and downward spirals are huge risks to your financial security – and could even lead to you running out of money in retirement.

That’s why if you’re retired or retiring soon, we believe a different strategy is in order for what to do in a bear market. We think that by following an invest and protect strategy, you can help safeguard your retirement from a bear market.

Watch a short webinar on our invest and protect strategy.


The buy-hold strategy is apparently popular because it’s simple, and works when your focused on growing your savings. But if you are retired or retiring soon, we suggest that you consider how you’ll live on those savings. Now it’s critical to protect what you’ve built so you can have as much income as possible for the rest of your life. Growth is important, but we believe protecting your financial security is even more important.

Bear markets are dangerous to your retirement. Not just because you might have to wait years for the market to recover. Not just because you could lose over 20% of your retirement savings since a bear market by definition is a drop of at least 20% in securities prices. But, because bear markets are not a once in a lifetime event. Typically occurring every 3-4 years, you stand a good chance of experiencing multiple bear markets during your retirement. That’s why we offer a plan for what to do in a bear market.


History tells us that bear markets will happen. How can you protect your life savings from them? At Retirement Planners of America, we use a stop-loss plan to protect your principal during bear markets.

Our Invest and Protect strategy keeps a close eye on the market so we can take action when it is trending poorly. We use an objective, mathematical formula to decide when to get out the market and when to get back in so we can help protect our clients from major financial harm. Our Invest and Protect strategy is designed to have unlimited upside—as long as the trend lasts—and then get out of the equities market with what we believe are tolerable losses when the trend changes.

One of our goals is helping to make your money last as long as you do. Helping to protect your retirement savings from market volatility is one of the most important ways we do that.

Are you ready to meet with an advisor to talk about what to do in a bear market?