A Smarter Alternative to Riding Out the Next Market Crash
Executive Summary
The standard advice to “ride out” market crashes assumes you don’t need income from your portfolio. Keith Demetriades explains why that assumption changes everything in retirement, what happens when withdrawals force selling during declines, and how a smarter retirement income strategy gives different parts of money different jobs—preventing forced decisions before the crash arrives.
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A Smarter Alternative to Riding Out the Next Market Crash
Most retirees hear the same advice during every market crash: stay calm, don’t panic, ride it out.
And during your working years, that advice probably made sense. Because when you were still earning a paycheck, you had one major advantage during a downturn: you didn’t need your portfolio to pay your bills.
You could keep contributing. You could keep investing. And you could give the market time to recover.
But retirement changes that. Because once you’re retired and taking income from your investments, a market crash is no longer just something you emotionally endure. It may become something you’re forced to sell through.
And those are two very different problems.
1. Why does “ride it out” change meaning once you’re retired?
The phrase “ride it out” sounds simple. But in retirement, it raises a very practical question: ride it out with what income?
Because the market may need time to recover, but your bills still arrive on schedule. Property taxes don’t wait for the S&P 500 to rebound. Groceries don’t pause because the market is down 20%. Healthcare costs don’t care whether your portfolio is temporarily depressed.
And if you’re relying on your investments to help fund your lifestyle, the money still has to come from somewhere.
During your working years, a downturn was usually something happening inside an account you weren’t touching yet. It was uncomfortable and stressful, but it didn’t directly affect how you paid your bills that month.
But retirement changes the entire setup. Because now the portfolio may be the thing providing the income. So when the market falls, you’re not just looking at a lower account balance. You may also be asking where next month’s income comes from and which account to draw from.
That’s a very different kind of decision than simply telling yourself to be patient.
2. What happens when withdrawals coincide with market declines?
This is where retirement income planning becomes critical. When you sell investments during a decline, those shares no longer participate in the recovery.
The market may recover, but the part of your portfolio you sold to create income is gone. And that can create a lasting impact on the retirement plan.
That’s why “just ride it out” needs to become something more specific: not just “stay invested and hope things recover,” but knowing where income comes from while the market recovers, which assets should be left alone, what part of the plan is designed to buy time, and how withdrawals should adjust when markets are under pressure.
3. Why are immediate income needs different from long-term growth?
A smarter retirement income plan gives different parts of your money different jobs. One part is designed for near-term income, one for stability, one for long-term growth, and one for flexibility when markets are temporarily down.
That way, when the next crash happens, you’re not asking your growth assets to fund your lifestyle at the exact moment they need time to recover.
4. How does time segmentation work in practice?
A stronger retirement income structure starts by separating short-term spending needs from long-term investment assets. That might mean keeping a portion of your plan in cash reserves, money markets, Treasury bills, or short-term bonds.
It’s not because those assets are exciting. It’s because they’re there to do a job: give your growth assets time.
Think of it like building a bridge over a difficult market period. You’re not trying to stop the storm, and you’re not pretending the storm won’t happen. But you’re building enough structure so you can get across it without damaging the long-term engine of your retirement plan.
5. What does a resilient income plan actually look like?
A well-built retirement income plan doesn’t eliminate losses. Markets go down, portfolios fluctuate, and there is always risk.
But it can change what those losses mean. Instead of a downturn immediately threatening your monthly income, it becomes something your plan has already accounted for.
You know where income is coming from. You know which assets are not supposed to be touched. You know when withdrawals may need to shift. And you know what rules are already in place.
That’s where confidence comes from—not from predicting the next crash, but from knowing you’re not dependent on perfect timing.
Real Wealth Starts With Real Life.
Contact Information
Keith Demetriades, CFP®, CKA®, believes real wealth starts with real life. He created the 4D Client Experience to help guide decision-making and ensure your money works as a tool to support your life. If you’re ready for a financial plan that reflects how you live and what you’re building toward, contact Keith at (806) 223-1105 or visit Kingsview Partners.
Disclaimer
The information provided in this blog is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor to discuss your specific situation and needs. Past performance does not indicate future results, and all investments carry risks, including potential loss of principal. Any financial product or strategy references are purely illustrative and should not be construed as endorsements or recommendations.
Investment advisory services are offered through Kingsview Wealth Management, LLC (“KWM”), a SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Insurance Services, LLC (“KIS”), by individually licensed and appointed insurance agents. KWM and KIS are subsidiaries of Kingsview Partners.
