Markets go up. Markets go down. And lately, it seems like they’re doing both before lunch.
If you’ve felt unsettled by recent headlines—tariffs, fluctuating interest rates, political uncertainty, shifting tech valuations—you’re not alone. Market volatility can test even the most experienced investors.
But here’s something worth remembering: volatility is a natural part of investing. It’s part of how markets work and how long-term growth happens. The key is having a thoughtful approach that helps you stay steady through the ups and downs.
Understanding Market Movements
When markets decline, it’s easy to assume the worst. But not all downturns are created equal. Understanding the terminology can help put short-term swings into perspective.
- A pullback is a short-term dip of around 5–10% from recent highs. These happen about 3-4 times a year, and sometimes don’t even make the headlines.
- A correction typically ranges from 10–20% and helps reset overvalued markets. These happen about every 1 to 2 years.
- A bear market involves a drop of more than 20% and may last for several months. Historically, these occur about every 6 years.
These periods can feel unsettling, but they’re a normal part of the investing cycle—and markets have historically recovered, rewarding long-term investors.
Helpful Habits when Markets Feel Uncertain
When things feel uncertain, it’s easy to question your decisions or wonder if you should be doing something differently. In reality, times like these are often best met with clarity, not constant change. Here are a few steady habits that can help you stay grounded and thoughtful during periods of market volatility:
- Stick to a Well-Built Plan
A strong financial plan isn’t just designed for smooth markets. It’s meant to help you stay on course through volatility. A diversified portfolio and clear goals can provide confidence, even when the headlines feel overwhelming. - Pause Before Reacting
It’s completely normal to feel emotional during market downturns. But emotional decisions—like panic selling or chasing trends—can often do more harm than good. Taking a breath and seeking perspective can make a big difference. - Check in With Your Comfort Level
If recent swings have you feeling anxious, it may be time to revisit your risk tolerance. Your investment mix should reflect both your long-term goals and your ability to stay comfortable along the way. - Look for Opportunities, Not Just Risks
Volatility can create opportunities to rebalance your portfolio, harvest tax losses, or invest at more favorable prices. This can also be a great time to consider Roth Conversions. Staying thoughtful and proactive can turn uncertainty into advantage.
Volatility Is Temporary, Your Goals Are Not
Market swings can feel uncomfortable in the moment, but history has shown that staying invested and making level-headed decisions is often what helps successful investors stay on track.
When the headlines get loud, it helps to come back to what matters most: your goals, your values, and the plan that’s guiding you forward. If recent volatility has you second-guessing your approach, now may be a good time to get in touch with us.
Strategies for a Smart Roth Conversion Plan
- Use a Multi-Year Approach: Spreading conversions over multiple years can help manage tax brackets and avoid large tax spikes.
- Time It Right: Analyze taxable income annually to determine the optimal conversion amount while staying within a favorable bracket. If you’re 63 or older, keep in mind that higher taxable income from conversions could increase Medicare premiums due to Income-Related Monthly Adjustment Amounts (IRMAA).
- Stay Informed on Tax Laws: Changes in tax policy could impact Roth conversion strategies, so ongoing review with a financial advisor is key.
Roth conversions in retirement can be a strategic way to manage taxes, control future income, and leave a tax-efficient legacy. However, every situation is unique. If you’re wondering whether a Roth conversion makes sense for your financial plan, we’re here to help. Let’s start the conversation and create a strategy tailored to your goals.
Stay Ahead with Expert Guidance
Sources:
1RMDs begin at age 75 for those born January 1, 1960 or later
2Exceptions to the 10-year rule include: surviving spouse, minor children of the decedent, those critically ill or disabled, and those not more than 10 years younger than the original account holder.
The commentary on this website reflects the personal opinions, viewpoints, and analyses of the Trinity Wealth Management, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Trinity Wealth Management, LLC or performance returns of any Trinity Wealth Management, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Trinity Wealth Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
