Navigating Through Times of Market Volatility
Ongoing market fluctuations can pose a risk to hard-earned savings and retirement assets, so be prepared by considering these level-headed steps.


Recent ongoing market volatility has many of us biting our nails. It seems we have watched the markets drop and then recover over and over again, and with no end to the volatility in sight, many are wondering when the bottom might fall out.
It’s no surprise then, that the latest findings from our Q3 Quarterly Market Perceptions Study show that Americans are increasingly worried about a major recession coming, when compared with the findings from earlier this year.
This anxiety has people worried about the impact of market actions on their investments as a whole, but also focused on their retirement savings, with nearly 4 in 10 survey respondents saying volatility is making them anxious about their nest egg. That number jumps to 50% when you look at the respondents with higher investable assets of over $200,000.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But as the old saying goes, “This, too, shall pass.” So, while you might be feeling a little nervous, and none of us can know for sure what the markets will do in the future, it’s best to not fret too much. Here are a few reminders to help calm your nerves and weather market volatility.
Pay attention, but don’t obsess
It can be hard to ignore the constant discussion on the economy and market conditions from the TV, social media and even our friends and family. It’s important to stay informed, but what’s not good is obsessing over every movement in the market. Panicking over drops can lead to knee-jerk reactions that can have a negative impact on your investment strategy, like selling at a loss. In that same vein, an increasing number of survey respondents say that during times of volatility, it’s good to stay neutral and not take any action (42%, compared with 39% earlier in the year).
There are certainly times to do your research and change strategies in partnership with your financial professional, but checking on performance too often can lead to errors in judgment, and in turn potentially costly decisions with a long-term impact on your portfolio.
Check in on your diversification strategy
Diversifying your investments across a variety of assets can reduce risk, help protect your overall portfolio in the long term, and provide a level of reassurance during market fluctuations. Working with a financial professional, you can find a range of different investment opportunities with the right overall balance. Keep in mind diversification does not ensure a profit or protect against loss.
Build in protection
Keep a long-term view, but if you are approaching retirement, there are a unique set of circumstances to consider. It’s important to think through how you can protect your hard-earned assets in the months and years ahead. Having a level of protection as well as a source of guaranteed income in retirement are always two important factors to consider.
With an unpredictable market environment, it might make sense to stay somewhat engaged in the market to take advantage of potential gains, but certain protections need to be in place to help lessen the overall impact of any major drops. Certain financial products, like an annuity, can provide that mix of growth potential and a level of protection, as well as guaranteed income for life. These guarantees are backed by the issuing insurance company. Fixed index annuities, for example, may be a good choice if you want the opportunity for accumulation, but don't want to risk losing money in the market.
Working with your financial professional, you can discuss what sort of protection your portfolio might need, and if an annuity makes sense within your retirement finance strategy.
Building your strategy
No matter what the market does in the coming months, by partnering with a trusted financial professional, you can build out a strategy that puts you in a good place to navigate market volatility. And by seeking out protection opportunities, making sure you have the right level of diversification, and of course keeping calm when things get rough, you’ll have the confidence in your financial strategy so you’re prepared for the weeks, months and years ahead.
Allianz Life conducted an online survey, the 2019 Q3 Allianz Life Quarterly Market Perceptions Study in August 2019 with a nationally representative sample of 1,004 respondents age 18+. The 2019 Q2 Allianz Life Quarterly Market Perceptions Study was conducted in May 2019 with a sample of 1,006 respondents. And the 2019 Q1 Allianz Life Quarterly Market Perceptions Study was conducted in March 2019 with 1,005 respondents.
Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kelly LaVigne is vice president of advanced markets for Allianz Life Insurance Co., where he is responsible for the development of programs that assist financial professionals in serving clients with retirement, estate planning and tax-related strategies.
-
Use the 'Newton Rule' to Grow Your 401(k) Retirement Savings
Harnessing Sir Isaac Newton's rule of retirement can boost your 401(k) savings while you chill.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope
Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope
Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
To Raise Prices or Not to Raise Prices: Tariff Tips for Small Businesses
Small businesses are making critical decisions. Should they pass on higher costs due to tariffs, or would that only cost them more in lost customers?
-
Five Retirement Planning Traps You Can't Afford to Fall Into, From a Wealth Adviser
To help ensure you reach your savings goals and enjoy financial security in your golden years, be aware of these common pitfalls. The key is to be proactive, informed and flexible.
-
Your 401(k) Can Now Include Alternative Assets, But Should It? A Financial Adviser Weighs In
Many employer-sponsored plans offer limited investment options, which can stunt growth. But participants considering alternatives might need some sound advice to get the most from their accounts.
-
Will Taxes Shred Your 401(k) or IRA During Your Retirement? It's Very Likely
Conventional wisdom dictates that you save in a 401(k) now and pay taxes later, but turning that rule on its head could leave you far better off. A financial planner explains why.
-
More Retirees Are Renting: Should You? A Financial Adviser Weighs In
In some ways, renting is cheaper, more flexible and easier, but unless you understand the implications for your taxes and health costs, it might not be for you.
-
I'm a Real Estate Investing Pro: This 1031 Exchange Strategy Can Triple Your Cash Flow
Savvy investors can use 1031 exchanges to unlock value by moving capital across markets in a play called geographic arbitrage. These tax implications can make or break the strategy.
-
I'm an Insurance Pro: Everyone Needs to Prepare for Earthquakes, Even if You Don't Live Near a Fault Line
Here are my tips for what to do before, during and after an earthquake. The more prepared you are, the more you'll be able to keep your wits about you if it happens.