How to Navigate a Market Crash in Retirement, Ep #57 

<p><span style= "font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;"> The last big crash where the year ended down was 2008, with the market ending down 38%. Before 2008, 2000–2002 were three years where the market was down in the double-digits. If you retire at age 62 like the average person, you’re expected to live another 30 years! That is 30 years where you will likely experience a market crash. </span></p> <p>So what should you do when you experience a market crash during retirement? Do you jump out of the market and make your portfolio conservative until the coast is clear? Or do you wait out the storm? I answer this listener's question in this episode of Retirement Made Easy.</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:41] Answering Keith’s question: </li> <li>[2:50] Find out how to get a free Yeti Tumbler!</li> <li>[4:42] Step #1: Create and reference your retirement plan</li> <li>[8:33] Step #2: Use the bucket strategy for retirement planning </li> <li>[12:10] Step #3: Stress-test your retirement plan</li> <li>[14:26] The biggest mistake that people make in a downturn</li> </ul> <h2>Step #1: Create and reference your retirement plan</h2> <p>If your goal is to retire at age 62 or 65, we must assume that you’ll live 30+ years. You will experience a setback in the market. It’s like taking a road trip from New York to LA. If you’re traveling that far, the odds of hitting road construction are pretty high. So you must plan ahead and ask yourself, “What will I do if…?”</p> <p>Tom Hanks plays Captain Sully in the movie, “Sully.” He was flying a plane when two birds hit the engines. Both engines went out. The first thing he did was ask the co-pilot, “Give me the QR.” It’s a manual that they reference in case of emergencies. Together, they determined they had to land the aircraft in the Hudson River. All 155 passengers survived because they had a plan in case of emergencies. </p> <p>T