It’s been an emotional roller coaster for anyone concerned about their retirement nest egg.
After watching retirement portfolios grow by more than 20% in both 2023 and 2024, it can feel painful — even frightening — to see those balances not just drop double digits, but bounce around day after day. Many are left wondering, “When will it stop?” or worse, “Could it get much worse?”
After 30+ years working in financial markets, my advice is simple: take a breath and remember that the stock market had become overvalued. Recent political events have simply taken some of the “air out of the tire,” that’s all. This is not the time to make drastic decisions.
Instead, this is the perfect time to meet with your financial advisor to ensure your portfolio is still aligned with your short- and long-term goals.
If your portfolio has become too aggressive — especially due to the tremendous growth of the “Magnificent 7” (Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), Nvidia, and Tesla), which now collectively make up around 32% of the S&P 500’s market capitalization — you may be more exposed than you realize.
Because of this massive growth, many portfolios have drifted far from their original asset allocation.
One woman I recently met with believed she could withstand a 20% market drop — but after a risk analysis, we discovered her actual exposure was more than double that!
Luckily, we caught it just in time, and she reduced her risk by half before the recent correction.
The key to sleeping at night is simple:
-Maintain an emergency cash reserve,
-Especially if you are withdrawing retirement income from your portfolio,
-And regularly rebalance your investments to stay aligned with your goals.
We’re all carrying a lot these days — life, family, career, financial pressures — and market volatility only adds more stress. That’s why staying proactive, rather than reactive, is critical to protecting both your money and your peace of mind.
This Month on Smart Women Talk…
To complement our theme of Unleashing Your Personal Power, I’ve invited two incredible women who will inspire you with their stories of resilience, growth, and purpose.
Both discovered that the challenges they faced were actually doorways to their true power — and that within every difficulty lies a gift.
First, meet Arivee Vargas — award-winning executive coach and author of Your Time to Rise: Unlearn Limiting Beliefs, Unlock Your Power, and Unleash Your Truest Self.
Arivee shares her personal journey of leaving a prestigious Big Law career when it no longer aligned with her values. Today, she empowers high-achieving women to redefine success on their terms. In our conversation, you’ll learn how to break free from limiting beliefs and take ownership of your true calling.
Next, meet Judy Greenfeld — lifelong entrepreneur, author, Rabbi, and spiritual coach.
Judy empowers forward-thinking women to make peace with their past, unlock their full potential, and live in deep alignment with their purpose.
Despite facing profound trauma — including divorce, her son’s cancer journey, and the tragic loss of her father to gun violence at 16 — Judy turned her pain into profound spiritual healing and purpose, leading to her remarkable work today.
I can’t wait for you to join me for these powerful conversations with two very smart — and very inspiring — women this month!
You can listen to Smart Women Talk wherever you get your podcasts or watch us on YouTube. And if you enjoy the shows, please be sure to like, subscribe, and share — it really helps us reach more amazing women like you.
Thank you for being part of our community! Here’s to unleashing your personal power — and thriving, even in challenging times.
Katana Abbott, CFP®, is a Midlife Millionaires® Coach and Certified Social Security Claiming Specialist, and the host of Smart Women Talk. For over 35 years, Katana has helped Baby Boomers plan for retirement, including how to create lifetime income, how to optimize their Social Security benefits, launch an encore career, and prepare for long-term care. She has written several books, created a financial literacy course, and is a popular speaker. Katana has been honored by NAWBO as one of Detroit’s Top 10 Businesswomen, receiving the Breakthrough Award. To download her new retirement guide, Three Smart Strategies to Maximize Your Retirement Income, visit www.katanaabbott.com.