Why Every Retiree Needs a Bear Market Plan

Let’s be honest—market declines aren’t maybe in retirement. They are when.

A typical retirement lasts 30 years, and during that time, there could be five or six bear markets. That’s five or six times the market could drop by 20% or more. And while we don’t know when those drops will happen, we do know they will.

So what’s the plan for when that day comes?

Here’s a quick story that helps explain why having a plan matters.

I’ve coached high school football for over a decade, and this past year, our team won the Tier 2 Senior Championship. One of my jobs was coaching the kickoff return team. Now, for most of the season, kickoffs are pretty simple—catch the ball, run it back.

But there’s one special situation we always prepared for: The Onside Kick.

This usually happens when a team is losing late in the game. They kick the ball short and try to recover it quickly to get another shot at scoring. It’s a high-pressure, high-stakes moment. And while it doesn’t happen often, if it does, the whole game could hinge on that one play.

So starting Week 1, we practiced our onside kick return. Just five to ten minutes, once a week. Same guys. Same formation. We kept it simple and drilled it every week. And honestly? We weren’t great at it in practice. But we stuck with it.

All season long, no one tried an onside kick against us. Then came the championship game. Three minutes left. We’re up by one touchdown. The other team lines up for an onside kick. And because we had practiced for months, we knew what to do.

The kids executed it perfectly. We recovered the ball and closed out the win.

Now Here’s the Takeaway: 

We didn’t know when the moment would come. We just knew it would—and we were ready.

That’s exactly why retirees need a bear market plan.

You don’t want to be making big decisions in the middle of a downturn. Emotions run high, and panic can lead to choices that set you back years. But if you have a plan in place—something you’ve thought through and prepared for—you can stay calm and stick to it.

It doesn’t have to be fancy. But it needs to be clear, and it needs to be something you can follow when things get bumpy.

Because in retirement, it’s not about avoiding the turbulence. It’s about knowing what to do when it hits.

If you enjoyed this,  you would love our white paper, Your Retirement Road Map: How to Make the Transition to Retirement  You can download it  HERE

What To Do Next

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For more information, refer to Preserving Wealth: The Next Generation – The definitive guide to protecting, investing, and transferring Wealth by Jack Lumsden, MBA, CFP® or schedule a call with Jack at 905-332-5503