Episode 116 – How to Handle Bear Markets at Every Stage of Life

Weathering the Storm: How to Handle Bear Markets Based on Your Age and Stage

Market downturns are a fact of life—just like taxes, birthdays, and awkward holiday dinners. The question isn’t whether bear markets will happen (they will), but how to handle them in a way that protects your long-term financial health.

In Episode 116 of Last Paycheck, CERTIFIED FINANCIAL PLANNER® professionals Rob and Archie Hoxton walk listeners through how to think about market drops differently depending on where you are in your life journey. Here’s what they had to say.

Bear Markets in Early Career: Buy the Dip, Don’t Fear It

When you’re in your 20s or 30s, volatility can actually work in your favor. You’re buying shares at a discount during bear markets, which boosts long-term returns. But many young investors fall into the trap of viewing portfolio balances like bank accounts—when values drop, they panic and stop contributing.

Don’t make that mistake.

The Hoxtons recommend staying the course (or even increasing your contributions if possible) during down markets. Think in terms of share count, not account balance. This mindset shift can turn market dips into long-term gains.

Mid-Career: Stay the Course, Even While Catching Up

If you’re in your 40s to early 60s and still accumulating wealth, bear markets can feel riskier—especially if you’re behind on retirement savings. But the key lesson remains: keep contributing. Don’t let temporary declines derail your long-term strategy.

It may also be time to start refining your asset mix—adjusting the stock/bond ratio and increasing your emergency fund to reduce your emotional reaction to market swings.

Early Retirement: Flexibility Is Power

In the decumulation phase (the early years of retirement), bear markets are trickier. You may need to sell shares for income—but if markets are down, that means selling more shares to get the same dollar amount.

To reduce this risk, Rob and Archie recommend:

  • Holding 6–12 months of expenses in a “secure bucket” (cash, CDs, etc.)
  • Reducing spending temporarily during a downturn
  • Keeping your lifestyle scalable so you can pause discretionary expenses if needed

This flexibility can make the difference between staying on track and running into trouble.

Late Retirement: Don’t Go 100% Conservative

While it’s common to shift toward more conservative investments with age, Archie warns against becoming too conservative late in life. You may still need growth to fund longevity, healthcare costs, or legacy goals.

The right ratio of stocks, bonds, and cash depends on your personal needs—but don’t assume 100% bonds is the right choice at 85. Growth still matters.

The Bottom Line: Have a Plan

Ultimately, your success in navigating bear markets depends on having a well-thought-out financial plan. With a strategy that considers your time horizon, income needs, and psychological tendencies, you can avoid costly mistakes and turn downturns into long-term opportunities.

Ready to stress-test your investment strategy before the next bear market?

Download the Investment Alignment Worksheet to evaluate your portfolio—and see if you’re truly prepared for what’s ahead. Or schedule a free consultation to talk to a fiduciary advisor who’s on your side.
Download The Worksheet
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

Episode 115 – Should You Downsize? Avoid These Costly Mistakes

For many retirees, downsizing sounds like the perfect plan. A smaller space. Less maintenance. More cash in your pocket. But without proper planning, it can also lead to financial pitfalls that eat away at your retirement security.

In Episode 115 of the Last Paycheck Podcast, Certified Financial Planners® Archie and Rob Hoxton break down the emotional and financial implications of downsizing. They share client stories, real-life scenarios, and their best advice for approaching this major life transition with eyes wide open.

Why Downsizing Is a Retirement Gamechanger

Many retirees are sitting on significant home equity, especially after years of rising real estate prices. Downsizing is often a key strategy to unlock that equity for retirement income or legacy goals. Whether you’re thinking about moving closer to grandkids, entering a retirement community, or just shedding square footage, the why behind your move matters.

But don’t let emotions take over. Acting too quickly—especially in today’s competitive housing market—can create major tax and liquidity issues.

Don’t Make These Mistakes

Here’s what Archie and Rob warn against:
1. Signing a Contract Before Talking to Your Advisor
It’s tempting to move fast when your dream home hits the market. But buying before you’ve sold your current home can leave you scrambling for funds—and potentially incurring massive capital gains if you sell investments in a taxable account.
2. Ignoring Better Short-Term Financing Options
If you’re between selling one home and buying another, consider a:
  • Home Equity Line of Credit (HELOC)
  • Securities-backed line of credit (from a brokerage account) These options can help you access liquidity without selling investments or triggering taxes.
3. Falling for Shady Lending Practices
Some lenders may suggest moving IRA assets to their firm to “qualify” for better loan terms. This is often unethical and may even be illegal. IRAs cannot be used as loan collateral, and no lender should require asset transfers just to issue a loan.
4. Overlooking Accessibility and Future Needs
Will your next home still serve you well at age 80 or 90? Ask yourself:
  • Can I live on one level?
  • Is the home accessible?
  • Are care services or retirement communities nearby?
  • Will I have to move again in a decade?
Rob and Archie compare the best retirement communities to going back to college—built-in meals, friends, and activities—with fewer keg stands.

The Bottom Line

Downsizing can absolutely help fund your retirement and simplify your life—but only when approached with the right strategy and support. Before making your move:

  • Map out your funding plan
  • Talk to your advisor
  • Understand the tax impacts
  • Look at the whole picture—your finances, your lifestyle, your future care

Need help building your downsizing game plan?

Download the Downsizing Decision Audit Worksheet to evaluate your readiness—and schedule a no-pressure consultation with our team.
Download The Checklist
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

Episode 114 – The 3 Estate Planning Documents Every Adult Needs

If you’re like most people, estate planning isn’t high on your list of exciting weekend activities. But as Rob and Jimmy make clear in Episode 114 of The Last Paycheck Podcast, having the right documents in place can make a huge difference for your loved ones—and your legacy.

Why Estate Planning Matters for Everyone (Not Just the Wealthy)

There’s a common myth that estate planning is only necessary if you have millions in assets. The truth? If you have a family, a bank account, or even just a strong opinion about your healthcare, you need an estate plan. Without it, your state government could end up making decisions you wouldn’t agree with—and your family could be left in a difficult position during an already stressful time.

The Three Critical Documents You Need

1. Last Will & Testament

This document directs who receives your possessions and appoints an executor to carry out your wishes. Rob emphasizes that a will is your final voice—it’s your opportunity to make sure your values are honored and your assets go where you want them to.

Jimmy points out a common misconception: that a will overrides beneficiary designations. It doesn’t. If your retirement account still lists your ex-spouse as the beneficiary, no will in the world can undo that mistake. That’s why it’s critical to regularly update both your will and your account designations.

2. Healthcare Directive (Living Will)

This document outlines your preferences for medical treatment if you’re incapacitated. Do you want to be kept alive on machines indefinitely? Or not? A healthcare directive allows you to clearly communicate your wishes—and it also appoints someone (your healthcare agent) to make those decisions if you can’t.

As Rob and Jimmy stress, this isn’t just a legal form—it’s a gift to your family. It removes the burden of guesswork and guilt from your loved ones in the middle of a crisis.

3. Durable Power of Attorney

If you become unable to manage your finances—due to illness, accident, or cognitive decline—this document gives someone you trust the legal authority to step in and manage your bills, taxes, and accounts.

Without a power of attorney, your family could be forced to go to court just to pay your mortgage or access your bank account. It’s simple to put this in place, and potentially devastating if you don’t.

How to Get These Documents

Rob and Jimmy encourage listeners not to overcomplicate the process. For simple needs, online tools and state-specific forms can work. For more complex situations—multiple properties, blended families, or business interests—working with an estate planning attorney is best.

And don’t forget: estate planning isn’t one and done. Update your documents as your life changes—marriages, children, divorces, or major asset changes should all trigger a review.

Your Next Step

Estate planning isn’t about fear—it’s about control and care. It’s about protecting your family, your values, and the wealth you’ve worked hard to build.

Ready to get started?

Download the Estate Planning Essentials Checklist. Use this simple tool to take inventory of your current documents, identify gaps, and move forward with confidence. Schedule a free consultation to review your plan with a trusted fiduciary advisor.
Download The Checklist
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

Episode 113 – Politics and Your Portfolio: How to Invest Without Losing Your Head

It’s no secret: political seasons can trigger intense emotions. But should those emotions guide your investment decisions?

In Episode 113 of the Last Paycheck podcast, Rob and Archie Hoxton explore how politics—left, right, or center—can quietly sabotage even the most thoughtful investors. From fear-induced selloffs to overconfidence when a preferred party is in power, political cycles tend to amplify emotional investing.

And that’s a problem.

Why Political Emotions Don’t Belong in Your Portfolio

Many investors believe that the markets will perform better—or worse—based solely on which party holds power. But the truth is more complex. Historically, markets have performed well under both Republican and Democratic leadership. Why? Because markets respond to long-term economic and business trends—not daily political drama.

As Archie puts it: “The market doesn’t care who’s president—it cares about earnings, interest rates, and business conditions.”

That means your personal reaction to politics could cause you to time the market poorly. And that rarely ends well.

The Cost of Emotional Investing

In the episode, Rob shares a client story about someone so politically stressed they stopped checking their account. When they finally came in for a review—expecting losses—they were shocked to learn their portfolio had actually grown significantly.

This isn’t uncommon. Political turmoil may cause short-term volatility, but long-term market gains often resume once emotions cool. Unfortunately, investors who panic miss the rebound—and lock in losses.

What to Do Instead

A better approach? Create a disciplined plan that can weather political storms:

  • Diversify broadly: U.S. and international markets, various sectors, risk-balanced portfolios.
  • Rebalance regularly: Keep your strategy aligned even as markets shift.
  • Keep investing: Especially if you’re still working. Long-term growth requires long-term participation.
  • Stress test your plan: Make sure you’re still on track even if markets dip.

Most importantly: avoid investing based on the news cycle. Markets care more about stability and policy than politics. And they hate emotional investors.

The Real Secret: A Financial Plan

Markets will always swing. Political drama will always exist. But a thoughtful, stress-tested financial plan can give you the clarity to ignore the noise—and keep moving forward.

As Rob says, “Having a plan means you don’t have to wonder whether you’re okay when the market drops. You’ll already know.”

Worried politics might derail your financial strategy?

Download our free Emotion-Proofing Your Investment Strategy worksheet to audit your current habits—and start planning with confidence. Or schedule a call with our team at Hoxton Planning & Management.
Download The Worksheet
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.