What to Do in a Bear Market

Do you know what to do in a bear market? We believe it’s especially important to have a plan when you’re in or near retirement and don’t have the time to rebuild your savings.

You may have heard that you should buy and hold though a bear market. After all, conventional wisdom holds that 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 we believe you need a strategy that tells you 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.

Why You Need to Plan for Bear Markets

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, have you considered how you’ll live on those savings? If you want to have as much income as possible for the rest of your life, protecting your financial security is even more important than growth in our opinion.

Bear markets are dangerous to your retirement. You might have to wait years for the market to recover. You could lose a substantial amount of your retirement savings. And because bear markets are not a once in a lifetime event, you could experience several during your retirement—and probably will since they occur every 3-4 years on average. That’s why you need a plan for what to do in a bear market.

Plan to Invest and Protect

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 of 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 an upward trend lasts. Once the trend shifts, the strategy then alerts us get out of the equities market with what we believe are tolerable losses.

We want to help you make your money last as long as you do. We believe that protecting your retirement savings from market volatility is one of the best ways to do that.

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