Don’t let market noise derail your retirement strategy
I spend a lot of time watching financial shows. I’m always struck by the hype and constant daily analysis of why things happened in the market. It’s like watching a sports roundup and analysis.
If you watch enough financial TV or scroll through enough market headlines, you might think a successful retirement depends on constant vigilance. Markets rise – adjust your portfolio. Markets fall – get defensive. Interest rates move – rethink everything. For retirees and those approaching retirement, this constant need to readjust can be harmful.
Financial media is built around urgency. Its goal is to capture attention and clicks by reacting quickly to market movements and data. Retirement planning, by contrast, is about consistency, discipline, and long-term thinking.
Time horizon mismatch leads to false urgency
The fundamental problem is a mismatch of time horizons. Financial media operates on a daily cycle. Retirement planning operates on a 20- to 30-year timeline. What feels urgent today is often irrelevant – or even misleading – over the course of a long retirement.
Every few years, the media declare a dramatic turning point: Stocks are too expensive, bonds no longer work, cash is suddenly king, or the traditional portfolio is broken. These narratives change far more quickly than retirement plans should.
There is strong evidence that reacting to market noise reduces investor returns.
Morningstar research shows that over the 10-year period ending December 31, 2024, the average investor earned 7.0% annually, while a simple buy-and-hold strategy returned 8.2%. That difference, about 15% cumulatively over the decade, was largely due to poor timing decisions.
In other words, the act of reacting, often prompted by bombastic headlines, can cost investors real money.
The Journal of Financial Markets released a study of tens of thousands of investors and found that frequent changes in risk exposure, especially during volatile periods, consistently reduced long-term returns. Investors experienced greater volatility in their personal portfolios than the markets themselves – largely because of behavioral reactions to short-term news.
For retirees, the biggest risks are rarely the ones dominating the news. A critical example is sequence-of-returns risk: the danger that poor market performance early in retirement, combined with portfolio withdrawals, can permanently impair long-term sustainability. Research shows that losses in the first five years of retirement can significantly reduce the likelihood that a portfolio will last a lifetime, even if long-term average returns are reasonable.
This risk is not solved by changing investments in response to headlines. It is managed through planning, i.e., maintaining adequate cash reserves, diversifying income sources, and structuring withdrawals thoughtfully.
I was watching a video on YouTube, and the host was encouraging retirees to check their portfolios on a weekly basis. I was shocked. Why on earth is that needed?
In fact, a BlackRock investor survey found that a significant portion of retirement savers monitor their portfolios monthly or even more frequently, despite professional guidance suggesting quarterly reviews are sufficient for most long-term investors.
Your portfolio should already be set up in a way to be able to withstand market volatility, which alleviates the need for constant checking. Constant monitoring increases stress and makes emotionally driven decisions more likely, especially during periods of volatility.
When reading articles on retirement too often, the focus is on performance and market returns. How much can be spent safely, where that income will come from, how taxes will affect withdrawals, and how to protect purchasing power over time are more important issues for the retiree than whether to invest in semiconductors or transportation stocks.
A portfolio designed to generate sustainable income can support retirees through a wide range of market environments. A portfolio optimized for headline performance may fail precisely when stability is most needed. As financial planner Michael Kitces said: “Financial planning is not about maximizing returns; it’s about maximizing the probability of successfully funding your goals.” That perspective is largely absent from the media, but it is central to retirement success.
This does not mean retirees should ignore the news entirely. Financial media can provide useful context about economic trends and policy changes. But information should inform, not dictate, decisions.
Commentators are not accountable for your retirement outcomes. Being wrong in the media carries no cost. Being wrong in retirement planning does.
Conventional financial media is fast, reactive, and emotionally charged. Retirement planning must be deliberate, patient, and personal.
For retirees, the greatest risk is not missing the next market rally. It is making irreversible decisions based on short-term noise. Turning down that noise and focusing on a well-constructed plan may be one of the most valuable steps toward a secure retirement.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing.
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