In today’s unpredictable environment, it’s easy to feel overwhelmed by what you hear on the news—tariffs, inflation, elections, stock market swings, and global uncertainty. When markets bounce dramatically from day to day, no matter if you’re nearing retirement, already retired, or actively building wealth, many are left wondering:
“How will this affect my financial future?”
“Should I make a move?”
“Should we sell investments?”
“Is now the time to shift from U.S. to international stocks?”
But here's one answer for all: you don’t need to guess what’s coming next to succeed financially and volatility doesn’t have to derail your long-term goals.
That’s where a time-tested, structured approach like The Bucket Plan® comes in. It doesn’t try to predict market movements. Instead, it prepares for them—giving you confidence in your financial future, even during turbulent times.
Why Volatility Feels So Personal in Retirement —And Why That’s Normal
When the market drops, headlines sound alarms. For those approaching or already in retirement, seeing portfolio balances swing can feel especially unsettling, particularly when it comes to sequence of returns risk. However, many mistakes are made by reacting emotionally and trying to time the market.
Resisting Temptations to Buy and Sell During Market Fluctuations
On any given day, the S&P 500 or Nasdaq may swing up or down and uncertainty can cause some traditionally steady stocks to decline. International indexes, particularly in Europe, have at times outpaced U.S. performance, creating questions around global allocation strategies.
It has some investors wondering:
“Should we shift our portfolio more toward international markets while the U.S. economy looks shaky?”
But timing the market rarely works with consistency. In fact, many people lose money trying to jump in and out at the “right” times. It’s called getting whipsawed: selling low, buying high, then reversing those moves again. It erodes your wealth and creates unnecessary stress.
The key to navigating these moments is preparing for them in advance — let your strategy do the heavy lifting.
Our golden rule: If your financial plan hasn’t changed, don’t change your plan.
A Bucket Plan helps you manage risk by strategically separating your money based on time horizon and purpose.
How The Bucket Plan® Creates Stability and Confidence
The Bucket Plan® was designed by our founder and CEO, Jason L Smith, to structure your assets in a way that aligns with your time horizon, risk tolerance, and income needs—giving you greater clarity and control in any market environment.
Here’s how the three buckets work:
The Now Bucket
This bucket is structured to hold enough cash or cash-equivalents to cover 6–12 months, and sometimes even more of immediate, accessible expenses. Your Now bucket typically contains things like money markets or short-term bonds and prevents the need to sell investments during market downturns, giving you breathing room and peace of mind.
Real-world strategy: In today’s environment, many Now Buckets are earning 4%–5% annual interest through government-backed money markets or short-term Treasuries.
- For retirees, this means income continues to flow, even when the stock market takes a dip.
- For working investors, the Now Bucket provides liquidity for emergencies, large expenses, or unexpected needs—without having to sell investments at a loss.
Why it matters: When markets drop, this bucket acts like a financial airbag. You don’t have to touch your long-term investments, and you avoid selling while values are temporarily down.
The Soon Bucket
Contains conservative investments structured to provide income for the next 5–10 years for those nearing or in retirement. For younger folks, this bucket has any money to access penalty-free if anything is needed from the Now Bucket. It’s designed to outpace inflation while protecting against volatility—helping ensure you can draw needed income without touching your long-term investments.
What we’re doing right now: Diversification. Spreading your investments across multiple asset classes makes your overall portfolio less vulnerable to downturns in any single area. Some portfolios may also incorporate protection-based strategies—like annuities or portfolio insurance—to create additional stability during market shifts. Many Soon Buckets contain a mix of U.S. and international bonds, dividend-paying stocks, and even private credit investments for more stable cash flow.
- In some portfolios, this bucket includes buffered ETFs or structured notes, which aim to reduce downside exposure.
- Private market debt is also becoming more popular—helping clients earn steady income while reducing exposure to stock market volatility.
Advisor insight: Even during this year’s volatility—with U.S. markets down 5%–10%—most clients’ Soon Buckets are flat or slightly positive. That’s by design. It provides a time cushion so clients don’t need to sell from their Later Bucket while it’s temporarily down.
The Later Bucket
This bucket focuses on long-term growth — while it is typically more exposed to market fluctuations, it’s designed with time on its side. It usually includes equities and growth-focused investments designed for needs 10+ years down the road. You won’t need to access these funds for a decade or more, allowing markets time to recover from short-term dips.
What’s happening in the market: This is where volatility is most noticeable—and expected.
- Many growth portfolios are down slightly year-to-date, with some sectors (like tech) seeing sharper dips.
- International equities, especially in Europe and emerging markets, have outperformed U.S. equities in certain periods this year, tempting investors to shift allocations.
Our perspective: A well-structured Later Bucket is globally diversified and built for the long haul. While short-term moves can create temptation, your Later Bucket isn’t money you need today—or even this decade. Its job is long-term growth.
*Client Example: A couple retired early and now sails the world. They emailed their advisor during recent tariff news, nervous about their investments. Their advisor reminded them that two years’ worth of income was already secured in their Now Bucket, and their Soon Bucket was holding steady despite the news. Just like that, peace of mind was restored.
Turning Market Volatility Into Strategic Opportunity
As I recently shared in my market update video, periods of volatility actually create unique opportunities for strategic investors. Here are several ways to potentially capitalize on the current environment:
- Roth Conversions: Converting traditional retirement assets to Roth accounts during market declines allows future growth to occur tax-free (for example, a tech stock down 20–30%).
- Tax-Loss Harvesting: Selling investments at a loss (to offset gains elsewhere) may reduce your tax liability and create an opportunity to rebalance your portfolio.
- Rebalancing: Disciplined rebalancing allows you to sell high-performing assets and buy those that have declined in value—essentially implementing a "buy low, sell high" philosophy. Selling from areas that held up well and buying into undervalued sectors, like U.S. small-cap or emerging markets, keeps your portfolio aligned—and may boost future growth.
- Dollar-Cost Averaging: If you're still contributing to investment accounts or you have extra cash on the sidelines, now may be the time to put it to work. Downturns allow you to purchase more shares at lower prices, which can boost long-term returns and potentially grow your wealth faster over time.
- Dividend & Interest Reinvestment: Continuing to reinvest income from your investments during down markets can help you accumulate more shares at discounted prices.
- Strong Income Regardless of Markets: Clients with balanced portfolios are still seeing positive cash flow—even when the news is negative. That’s the power of building in stability from the start.
Filtering Out the Noise: What You’re Not Hearing on the News (But Should Be)
Headlines are designed to stir emotions, not offer personalized advice. That’s why many people feel anxious even when their portfolio is performing exactly as planned.
If your Now and Soon Buckets are doing their job—and you understand the purpose of each dollar you’ve saved—then short-term noise doesn’t need to shake your confidence.
*Advisor Perspective: Even with market swings, many of our clients’ Now and Soon Buckets are flat or even positive. They’re still generating income. They’re not forced to sell. And their Later Bucket has time to rebound. That’s exactly what we planned for.
Staying the Course Pays Off
Market volatility is inevitable. But with a structured plan like The Bucket Plan®, you don’t have to navigate it alone—or without a strategy. At JL Smith Holistic Wealth Management, we’ve seen time and time again that disciplined investors who stick with their plan during downturns are the ones who come out on track. While past performance is never a guarantee, historical data shows that missing just a few of the market’s best recovery days can drastically reduce long-term returns. Instead of letting emotions dictate your decisions, you can move forward with purpose, knowing your plan was built with these moments in mind.
Learn more about how we help our clients navigate volatile markets
We are always here for our clients during uncertain times. If you have questions about your financial plan or would like to discuss how The Bucket Plan® can help you navigate market volatility with confidence, we're just a phone call or email away.
And if your current advisor with another firm isn't talking to you about these strategies, it's time to reach out. Schedule a consultation today.