When Markets Are Jumpy: A Financial Planner Explains How to Stay Grounded

Market turbulence makes even the most experienced investors nervous. Here are practical tips for ignoring the panic and trusting your long-term plan when things get volatile. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. 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.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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But the United States has always bounced back after recessions, market crashes and other problems, so panicking is the last thing you want to do when the market fluctuates.Even in times of extreme volatility, we should continue to invest with confidence and trust our investments.Volatility itself refers to how much the price of a stock or bond fluctuates over a given period of time. High volatility is when large, sometimes unpredictable, price changes occur. When we experience low volatility, the market is more stable.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit 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.These significant swings are usually caused by a large number of investors either selling or buying investments at the same time. Recently, concerns over the economy, inflation, and interest rates have been raising investors' anxiety, leading to volatility in the market.About Adviser IntelThe author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.When investors are unsure of what is going to happen, prices are likely to swing dramatically in either direction.Another huge influence on the market: The Magnificent 7. This is the informal term for seven of the largest and typically most influential companies in the stock market. Because of their large size, these seven stocks have a disproportionate impact on the entire stock market's performance.A few of these top stocks are Amazon (AMZN), Apple (AAPL), Meta (META) and Tesla (TSLA), and they account for more than 30% of the S&P 500. This concentration makes the market highly sensitive to news from just a few companies.Volatility on Wall Street isn't uncommon. I often tell my clients to think of investing as a risk and reward system. Many stocks have been doing well lately, leading to high rewards. However, with big gains come big losses, so you have to approach every investment knowing the risk.Anyone who has market-driven assets will be impacted by changes, and even though we are seeing tough times, it's important you don't make any rash investment decisions. While we cannot predict what happens on Wall Street, we can keep an eye on any changes.Make sure you are following what the Federal Reserve is doing, as both a cut and a pause on rates can cause more panic on Wall Street. While we have seen a few cuts and pauses in interest rates, the change in inflation numbers could result in future Wall Street volatility.Also, pay attention to the Consumer Price Index report and unemployment rates, as large changes can make investors nervous. We have seen previous reports cause markets to fluctuate as investors react to any breaking news.Look at the recent layoff news at Verizon or UPS — many investors took this as a sign of the economy diving and made them nervous about their investments.Finally, it's important to keep an eye on any political developments. The markets tend to react dramatically to shifts in any administration's policies, especially when they are significant— as we saw last year with tariffs.We may not be able to predict any future moves on Wall Street, but we can prepare for them. First and most importantly, have a plan that is personalized to your situation.It's essential to have your own goals and timeline to know your risk tolerance. It may be tempting to pull out of the market when times are tough, but don't.If you sell when stocks are low, then you are locking in that loss, meaning you won't be able to make up for it when stocks rise down the road.Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.Protecting yourself and your investments looks different at every age. If you are in your 30s, decades away from retiring, you have plenty of time for your finances to recover. However, if you are in your 60s, getting close to retirement, you are in a much more vulnerable position.This is one of the many reasons why I tell my clients to diversify their investments. Avoid putting all of your eggs into one basket because this will expose you to unnecessary risk. Instead, consider a variety of assets, such as CDs or annuities, in addition to market-driven ones.Investing can be intimidating, and there is nothing wrong with asking for help. An adviser will help you assess your risk tolerance and choose investments that are right for your financial picture.If you are nervous about the future of the stock market and its impact on your retirement plans, we can help. Schedule a free consultation on our website, theretirementsolution.com. No matter how experienced you are at investing, volatility can be nerve-racking, but I tell my clients to remember that it is an intrinsic part of investing.

The Retirement Solution, LLC, is an investment advisory firm registered with the Securities and Exchange Commission ("SEC") under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training, nor does it imply an endorsement from the SEC. Insurance products and services are offered and sold through The Retirement Solution, LLC, and individually licensed and appointed insurance agents. This is for informational purposes only and should not be considered as investment advice or as a recommendation of any particular strategy or investment product. This is not a solicitation or an offer to buy or sell any specific security.This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.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.Jake Richards grew up in Columbus, Ohio, and earned his degree from Purdue University before beginning his career in the financial industry. His experience leading a regional team helped him develop a heart for service and a deep understanding of how to guide people through important life decisions. He's passionate about helping clients feel confident about their future and finds it incredibly rewarding to walk alongside them as they turn their retirement goals into reality. Ensuring both partners are engaged in financial decisions isn't just about fairness — it's a risk-management strategy that protects against costly crises. Five lessons to learn from the 2026 Winter Olympics for your career and finances. Early strength gave way to AI skepticism again as a volatile trading week ended on another mixed note. Ensuring both partners are engaged in financial decisions isn't just about fairness — it's a risk-management strategy that protects against costly crises. Early strength gave way to AI skepticism again as a volatile trading week ended on another mixed note. Attempting to conquer Medicare without a plan is risky. The safest route requires a thorough understanding of your options and never leaves decisions to chance. If a charitable remainder trust puts too many constraints on your family's charitable giving, consider combining it with a donor-advised fund for more control. Illinois' estate tax "threshold" (rather than "exemption") can surprise families, but proactive planning can help preserve more for heirs and charitable causes. Markets are paying more and more attention to hyperscalers' plans to spend more and more money on artificial intelligence. The Lette A new chairman of the Federal Reserve has been named. What will this mean for the economy? The January CPI report came in lighter than expected. Here's what economists say that means for the Federal Reserve and interest rates.