How to think about the latest market pullback

Market volatility looks different depending on where you are in life. A 10% decline can feel like an opportunity… or a threat. Often, the difference isn’t the market — it’s your stage.

While there’s always nuance, we think about portfolios across three broad phases:

The Accumulator (Age 25–45)

This is the building phase.

Income is growing. Savings rates matter more than market returns. Time is your biggest advantage.

Pullbacks here are not something to fear — they’re something to use.

You’re buying assets at lower prices
Future contributions go further
Volatility is a feature, not a bug

For this group, we typically lean into equities and growth assets. The goal isn’t stability today — it’s maximizing long-term compounding.

If anything, market declines are when this group should be most aggressive, not least. Here are ways to take advantage of market pullbacks:

Increase 401(k) contributions so more dollars get invested while prices are lower
Make current-year IRA contributions (or even prior-year if still eligible) during periods of weakness
Move excess cash into the market — reallocating from high-yield savings into equities when stocks drop
Automate additional investing during declines — even small incremental buys during pullbacks can materially improve long-term outcomes

The Keeper (Age 40–60)

This is the transition phase.

You’ve built meaningful assets. Now the question shifts from “How do I grow this?” to “How do I protect and grow this?”

You still need growth — but you can’t afford large, permanent setbacks.

Allocation becomes more balanced
Risk is managed more intentionally
Income and diversification start to matter more

This is where thoughtful portfolio construction really matters. Not all dollars should be exposed to the same risks.

Pullbacks here are less about opportunity and more about discipline — sticking to a plan, rebalancing when appropriate, and avoiding emotional decisions. Here’s what we’re focused on for this group:

Gradually increase high-quality bond exposure using new dollars — not necessarily by selling stocks
Direct bonuses or excess cash flow into bonds to naturally rebalance (e.g., maintaining a 70/30 target without triggering taxes)
Use market declines to execute Roth conversions — paying taxes on temporarily lower asset values
Make sure planning stays aligned with timing — for example, dialing down risk in a 529 plan as college spending begins

The Spender (Age 60+)

This is the distribution phase.

Your portfolio is no longer just growing — it’s working for you.

That changes everything.

Withdrawals are happening regardless of market conditions
Sequence of returns risk becomes real
Stability and income take priority

For this group, the goal is not to “win” the market — it’s to fund a lifestyle with confidence.

That often means:

Holding more bonds and income-producing assets
Maintaining a cash buffer
Structuring the portfolio so near-term spending isn’t dependent on volatile markets

Pullbacks here aren’t buying opportunities in the same way — they’re something to be planned for in advance.

Here is what we’re focused on for this group:

Maintain at least 2 years of cash flow needs in safe assets to avoid selling equities during downturns
Turn off dividend reinvestment so portfolio income supports spending needs
Optimize withdrawal guardrails — dynamically adjusting spending based on market performance

The Bottom Line

The market doesn’t change — your relationship to it does.

The same pullback can be:

An opportunity for an accumulator
A test of discipline for a keeper
A risk to manage for a spender

The key isn’t predicting what markets will do next. It’s ensuring your portfolio is aligned with what you need it to do — and we work closely with you to keep it that way.

Note: This article was developed with the assistance of AI tools to help refine language and presentation. All ideas, opinions, and portfolio guidance reflect the views of Blue Haven Capital.