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Featuring a 17-Minute Educational Video with Chase & Blair Tushaus

In our recent video, my brother Blair and I sat down to talk through a topic that tends to stir up a lot of emotion: market volatility. When headlines get loud and portfolios get choppy, it is easy for fear to grab the wheel. Our goal in this conversation was to bring some calm, context, and strategy back into the picture.

We also talked about something that often gets overlooked during market swings: volatility can create planning opportunities. That may include tax planning, portfolio positioning, and making sure retirees are not forced to pull money from the wrong places at the wrong time.

You’ll notice this is not just an investment conversation. Blair and I believe the best planning happens when investments, taxes, and cash flow are all working together. That is where a lot of the real value can show up over time.

Key Takeaways

  • Market volatility is normal, and short-term declines do not automatically mean long-term damage.
  • Emotion-driven selling may cause investors to miss recoveries.
  • A down market may create a timely Roth conversion opportunity in some situations.
  • Retirees need to plan for withdrawals, RMDs, and liquidity (not just returns).
  • Investments, taxes, and cash flow planning tend to work best when they are coordinated. This is why at TWM, we offer a full-service program where investment management, financial planning, tax planning, and estate planning all work together.

Why Market Volatility Doesn’t Automatically Mean Disaster

What I Was Pointing Out on the Chart

One of the main points I made in the video is that a market decline and a bad long-term outcome are not the same thing. Based on the video discussion and chart, the idea is straightforward: markets can experience meaningful intra-year declines and still finish the calendar year higher. That aligns with long-term market data showing that drawdowns are common even in years that end positive.

As my dad Kirk often says, the market climbs a wall of worries.

That does not mean investors should ignore risk. It means fear should not be the strategy. In the video, I talked about how someone who got completely out of the market during a sharp decline might have missed not only the rebound, but the return that followed. That is often the hidden cost of panic: the market recovery rarely sends an invitation before it begins.

Why Emotional Decisions Can Be Expensive

Blair expanded on this with an important point: some of the biggest gains can happen near the bottom and during the early part of a recovery. That observation is consistent with investor education from firms that show how missing just a handful of strong market days can meaningfully reduce long-term returns.

In other words, when investors let fear drive the boat, they may abandon the very stretch of water where recoveries tend to happen fastest.

When Volatility Hurts More: Withdrawals and RMDs

Why Retirees Experience Down Markets Differently

One of the best points Blair made was this: volatility feels different when you actually need money from your accounts.

If you are retired, taking Required Minimum Distributions, or relying on your portfolio for income, a market decline is not just an emotional event, it can become a cash flow problem. Selling assets near a low to meet spending needs can lock in losses and leave less money available for the rebound. That is one reason retirement planning should go beyond investment performance alone.

Traditional vs. Roth IRAs

In the video, Blair also gave a simple framework for how Traditional and Roth IRAs differ. Generally speaking, a Traditional IRA is funded with pre-tax dollars and grows tax-deferred, while a Roth IRA is funded with after-tax dollars and may provide tax-free qualified withdrawals later.

That distinction matters because it shapes how distributions are taxed in retirement.

We also discussed Required Minimum Distributions, or RMDs. Under current IRS rules, RMD timing depends on the type of account and your date of birth, and for many retirees today, RMDs begin in the year they reach age 73.

Why a Down Market May Create a Roth Conversion Opportunity

Converting at a Lower Value

This is where volatility can become more than something to endure, as it may become something to use strategically.

In our conversation, Blair walked through an example: if the goal is a $100,000 Roth conversion, but a market decline temporarily reduces the value of the assets to $80,000, converting at that moment may mean recognizing less taxable income while allowing any future recovery to happen inside the Roth. In general, the IRS defines a Roth conversion as moving eligible assets from a traditional retirement account into a Roth IRA.

That timing can matter.

Once the assets are converted, they remain invested. So if the market rebounds, that recovery occurs inside the Roth account, where future qualified growth may be tax-free. This is one reason volatility may create opportunity for investors who have the tax flexibility and cash flow to act thoughtfully rather than react emotionally.

Why Tax Planning Shouldn’t Be a Once-a-Year Exercise

A lot of people think tax planning happens once a year. Blair and I see it differently.

Sometimes the most meaningful planning opportunities show up in the middle of the year, especially when markets move sharply. Whether a Roth conversion makes sense depends on your tax bracket, your future income expectations, your available cash to pay the tax, and how the move fits into the rest of your overall plan. That is why these decisions should be coordinated with broader tax planning, not made in a vacuum.

As I said in the video, it’s not what you make, it’s what you keep.

Protection Matters More as Retirement Gets Closer

Defined Outcome and Buffer Strategies

We also spent time talking about a question many retirees ask: How do I stay invested without taking the full brunt of every downturn?

In the video, I described defined outcome and buffer strategies as tools that may allow investors to stay tied to market performance while adding a layer of downside protection over a defined period. On our Investment Management & Advisory page, we explain how our firm implements strategies such as buffers to help manage volatility and align investment decisions with the broader financial plan.

These strategies typically involve a tradeoff. An investor may accept a cap on upside in exchange for some protection on the downside. That tradeoff will not fit every portfolio, but for retirees or near-retirees, it may be worth exploring when protecting principal matters more than capturing every last point of upside.

Different Seasons of Life Call for Different Risk

This is one of the biggest planning distinctions Blair and I see.

For someone with a 25- or 30-year time horizon and no near-term need for withdrawals, full market exposure may be perfectly reasonable. But for someone entering retirement, drawing income, or nearing the RMD years, large drawdowns can create real planning problems. At that stage, the goal may not be to outrun every benchmark. It may be to keep the retirement ship off the rocks.

The Best Plans Coordinate Investments, Taxes, and Cash Flow

One Decision Rarely Stays in One Lane

Near the end of the video, Blair made an important point: you cannot just have the investments, you cannot just do the taxes, and you cannot just have the cash flow planning.

That may be the core message of the entire conversation.

A portfolio decision can affect taxes. A tax decision can affect cash flow. A withdrawal decision can affect both portfolio longevity and future flexibility. That is why real planning is rarely about one isolated move. It is about seeing how all the pieces fit together.

That philosophy is reflected across TWM’s investment management, financial planning, tax planning, and estate planning services. The work is designed to be coordinated, so each decision supports the others instead of creating unintended consequences elsewhere.

Conclusion

Market volatility is never comfortable, but it does not have to derail a good plan. In our discussion, Blair and I highlighted how downturns may create opportunities in tax planning, how retirees need to be thoughtful about withdrawals and RMDs, and why portfolio protection becomes more important as retirement gets closer. When the water gets rough, the answer is not to panic, it is better planning.

Want to take the next step? Visit Tushaus Wealth Management to book a free 1-hour strategy session or download our free tax planning guide.

The information presented in this piece is the opinion of Tushaus Group, LLC and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. Past performance is no guarantee of future performance. Tushaus Group, LLC is a Registered Investment Advisor.

Frequently Asked Questions

What is market volatility?

Market volatility refers to how much prices move up and down over time. In our conversation, Blair and I frame volatility as something investors should expect, not something they can eliminate entirely. The goal is typically not to avoid every market bump, but to build a strategy that may hold up when those bumps arrive.

Should I sell when the market drops?

That depends on your plan, but our message in the video is clear: emotion-driven decisions can be costly. Investors who exit during fearful moments may miss both the recovery and the gains that follow. Risk should be managed, but panic should not be the investment process.

What is an RMD?

An RMD, or required minimum distribution, is the minimum amount many IRA and retirement plan owners must withdraw each year once they reach the applicable age under IRS rules. Those withdrawals can matter even more during a down market because selling assets to raise cash may affect the long-term plan.

What is a Roth conversion?

A Roth conversion generally moves money from a traditional pre-tax retirement account into a Roth IRA. The converted amount is generally included in taxable income for that year, which is why timing and coordination with the rest of the plan matter.

Can a down market be a good time for a Roth conversion?

Potentially, yes. If the value of the assets being converted is temporarily lower, you may recognize less taxable income at conversion and allow any subsequent recovery to happen inside the Roth. Whether that works well depends on your tax picture, cash flow, and long-term goals.

What are buffer or defined outcome strategies?

These are strategies I described in the video as ways to stay connected to market performance while adding some level of downside protection over a defined period, generally in exchange for limited upside. Details vary by structure, so they should be evaluated as part of a broader retirement, investment, and tax plan.

Why is coordinated planning so important in retirement?

Because one decision rarely stays in one lane. An investment move can affect taxes, a withdrawal can affect long-term growth, and an RMD can affect both cash flow and taxable income. Blair and I wanted to emphasize that better outcomes often come from looking at the full map, not just one trail at a time.

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