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Use the Market Risk Explorer to Strengthen Your Plan

This article explains how to use the Market Risk Explorer to strengthen your plan during potential market downturns.

Nancy Gates avatar
Written by Nancy Gates
Updated over 3 weeks ago

If a market downturn reduces your Chance of Success, the Market Risk Explorer helps you see the impact so you can make the necessary steps to strengthen your plan.

Consider these strategies to fortify your plan:

  • Increase Savings

Boost your retirement savings rate using Boldin's Contribution feature:

  • Capture your employer match

  • Model contributions to a Roth IRA

  • Max out your employer-sponsored retirement plan

You can track your progress by viewing your Savings Rate in the Financial Wellness Metrics Library.

  • Adjust Your Investment Strategy

During market downturns, you may want to shift toward a more conservative allocation, such as increasing cash or fixed income. Boldin's Recommended Rates facilitate easy adjustments to asset allocation.

You can also model future rate changes. This is especially useful if you're nearing retirement and looking to transition from equities to fixed income for stability.

  • Position Lower-Risk Assets for Early Retirement

Use Boldin's Customized Withdrawal Strategy to draw from safe, low-volatility accounts (e.g. cash, money market, or bonds) in the early years of retirement, reducing the impact of market losses.

  • Reduce Spending

With Boldin's Detailed Budgeter, you can separate essential (i.e. Must Spend) vs. discretionary (i.e. Like to Spend) expenses. Testing both versions of your plan prepares you for adjusting spending if returns fall short or a large market drop occurs.

  • Extend Working Years

Delaying retirement by even a year or two can give your portfolio more time to grow before withdrawals begin. Boldin's Retirement Age feature shows how shifting your retirement date impacts your Chance of Success during a market downturn.

By modeling downturns in the Market Risk Explorer and applying these strategies, you can strengthen your plan and stay resilient through inevitable market volatility.

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