With growing concerns about rising tariffs and ongoing trade disputes, you may be wondering how these policy shifts could impact your retirement. While the situation around tariffs has stabilized somewhat, there’s no guarantee that calm conditions will last.

In this week’s Retire Wiser with NBC Connecticut, Joel Johnson, CFP® shares valuable insight on how to keep your retirement plan on track amid market unpredictability.

Staying Calm During Market Fluctuations

Historically, the stock market tends to experience some form of crisis or major correction roughly every 5 to 10 years. While each event has different causes, the pattern remains the same: markets decline, and then they recover.

This ebb and flow is a natural part of investing and having a well-structured plan is the key to navigating it successfully. One of the best ways to protect your retirement is to avoid impulsive decision-making driven by fear and stay the course with the plan in front of you.

The Role of Diversification

A well-diversified portfolio can help reduce the temptation to make emotional decisions during times of economic uncertainty. Think of diversification as having your money in different “buckets,” with some in safer investments and others in riskier ones.

When the market goes down, the last thing you want to do is take money out. A bucket strategy helps prevent this by setting aside safer, short-term funds so you don’t have to sell investments at a loss. It also gives your long-term assets time to recover.

The Importance of a Financial Plan

Having a solid, long-term financial plan provides a stable foundation, allowing you to weather market fluctuations calmly without overreacting or making drastic changes based on short-term circumstances. At most, you’ll only need to make minor adjustments over time.

If you’re uncertain about the stability of your financial strategy, a second opinion can help bring clarity and insight into your situation.