You Need a Financial Plan
It's the only way you can really figure out how to handle the market's ups and downs.

We have all heard the cliché, "Hope is not a plan." Market corrections of 10% or more are never fun, but they do a great job of reminding us of the truth in that common phrase. We all need to remember that market corrections are a natural occurrence that we have to accept if we want to have money invested in the stock market.
With "financial entertainment channels" all focused on ways to increase ratings, maximize viewership and boost advertising revenue, they are working hard to keep us whipped up into an emotional frenzy over what is really normal market activity. They want us to be emotionally pumped up. They want us glued to the screen to see what "big" news might come next. I think history has proven that while mixing pumped up emotions with investment decisions might be great for TV ratings, it is not a recipe for long-term financial success.
When market corrections do occur, they quickly divide all of us into two basic categories: those with a plan and those without. Both groups want answers to the following questions:
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.
- How bad is this?
- What does this mean for me?
- What is the impact on my investments?
- Does this affect my financial well-being?
- What should I do?
While these are all important questions to consider, the most important question to ask yourself is this:
How can you possibly answer any of the five question listed above without a financial plan in place?
The advantage of having a financial plan in place is that you can pause and take a systematic look at what a correction really means for you. It provides a framework that allows you to assess current market conditions within the context of your goals and helps put everything into a more personal context. Doing this will likely offer some peace of mind and hopefully prevent any panicked emotional decisions. Having a plan does not immunize you from market corrections, but it can help you avoid emotional responses and give you a way to make informed decisions about how to react.
The next time we experience any kind of market correction, I encourage everyone to slow down, keep things in perspective and try to understand what current market activity, positive or negative, really means for you. Of course, having a plan will help.
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.

Ian Maxwell is an independent fee-based fiduciary financial adviser and founder and CEO of Reviresco Wealth Advisory. He is passionate about improving quality of life for clients and developing innovative solutions that help people reconsider how to best achieve their financial goals. Maxwell is a graduate of Williams College, a former Officer in the USMC and holds his Series 6, Series 63, Series 65, and CA Life Insurance licenses.
Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Reviresco Wealth Advisory and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.
-
The Most Popular Apps for Retirement Planning in 2025
A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.