Retiring into a bear market can put even a well-funded retirement plan under immediate pressure. The danger is not only the decline itself, but having to fund spending from depressed investments—and making emotional decisions that lock in losses.
Derek Gabrielsen, CRPC® — Senior Wealth Advisor, and Tony Zabiegala, CRPC® — Senior Wealth Advisor, examine three retirement scenarios and the choices that changed the outcome. They discuss maintaining a reserve for portfolio-funded living expenses, using cash and short-term bonds before selling equities, adjusting discretionary spending, considering part-time income, rebalancing, evaluating Roth conversions during a downturn, and using annuity income when appropriate.
This episode provides a practical framework for stress testing a retirement plan before the next bear market arrives. It offers an educational perspective on withdrawal strategy, liquidity, taxes, portfolio structure, and the behavioral decisions investors face during difficult markets.
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Chapters
00:00 Retiring Into a Bear Market
00:24 Why Early Retirement Losses Matter
03:59 The Cost of Panic Selling
05:25 Building a Retirement Cash Reserve
07:56 Flexible Spending and Part-Time Income
10:09 A Bear Market Retirement Playbook
12:17 Rebalancing Instead of Abandoning the Plan
13:28 Roth Conversions During a Downturn
14:15 Why Retirees Still Need Growth
14:39 Using Annuities During Market Declines
16:05 Preparing Before the Next Bear Market