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How to Retire During a Volatile Stock Market


After a long stretch of calm and a relentless rally, the stock market could be headed for trouble. Stock market corrections, typically defined as a loss between 10% and 20% from the peak, occur about every two years, on average. The last one began in May 2015, so we’re due. The S&P 500 trades at about 24 times corporate earnings for the past 12 months, more expensive than the market has been 90% of the time since 1928, says Jim Stack, president of InvesTech Research and Stack Financial Management. "This is one of the more overvalued markets in history," he says. "It carries a high degree of risk."


When a market is ready to correct, it will seize on a trigger -- and this market has plenty to choose from. Worries include the lingering effects of Hurricane Harvey, the threat of a government shutdown if the federal borrowing limit isn’t increased and escalating nuclear tensions with North Korea. Of the 21 corrections since World War II, nine of them began in September, October or November. Whatever the cause, any market drop is particularly worrisome for retirees and near-retirees, who have less time to make up for losses. Here are seven tips to help you survive any turmoil.

SEE ALSO: 4 Funds to Cut Your Risk in a Stock Market Correction


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