Well hello there, and thank you for joining us for the Providence Financial Retirement Show.

Well, that’s worked for the last dozen years or so—but is it going to work for the next two, three, or even ten years? That’s what we don’t know. And there is a real possibility that it doesn’t.

A solid retirement plan should never be built on the assumption that you’ll be able to sell assets and that the market will cooperate when you need it to. If that’s your situation, then what you may be experiencing right now—the tension, the uncertainty—could very well be the result of that exact risk showing up in real time.

The success of your retirement is all about the income. If your plan allows you to generate income from your portfolio in both good times and bad without having to touch your principal, then you’re going to be fine. If it doesn’t, then you may have a legitimate reason to be concerned.

If you’d like to learn more about how to generate income from your portfolio without cannibalizing your principal, we’ve put together a free animated video for you. All you need to do is provide your email address, and we’ll send it right over.

Just go to providencefinancialradio.com/video. Again, that’s providencefinancialradio.com/video. Leave your information, and you’ll have it in your inbox shortly. It’s short—only seven or eight minutes—but it’s powerful. You’ll learn how to create income from your portfolio while protecting your principal at the same time.

Again, go to providencefinancialradio.com/video and you’ll receive it shortly. You’re really going to enjoy it.

I’m Anthony Saccaro. If you’re just joining us, you’re listening to the Providence Financial Retirement Show. Today, we’re talking about the war in Iran and whether or not it’s going to affect your retirement.

The short answer is this: if you’re invested incorrectly for periods of volatility like this, it absolutely could have a lasting impact. But if you’re positioned properly—focused on interest and dividends like we discuss here on the show—then you’re likely going to be just fine.

Up to this point, we’ve uncovered something important: it’s not the war, geopolitical tensions, or even government shutdowns that are doing the real damage to retirement plans. It’s how people respond to those events.

During periods of market volatility, your reactions can be far more damaging than the events themselves. Much more damaging than the market. Much more damaging than the headlines.

What tends to happen is people lock in losses. They sell during downturns, miss the recovery, and unintentionally put themselves in a worse position than where they started.

We’ve received a lot of calls about this recently, and many of you are asking the same question: what should I do? Should I sell? Should I move to cash? Should I go to safety?

We’re going to address those questions, but first, let’s go back to a recent example—COVID.

When COVID hit, the market was filled with uncertainty. We didn’t know how long it would last, how severe it would be, or how long shutdowns would continue. If the government hadn’t stepped in with trillions of dollars in support, we may have seen a full market collapse.

Even with that intervention, the market dropped nearly 40% in about a month and a half. It was fast. It was dramatic. And it was driven largely by emotion—fear, anxiety, and panic.

But within six months, the market had recovered and was reaching new highs.

Here’s the key point: it wasn’t COVID itself that caused the damage to most investors. It was how people reacted to it.

And that’s exactly what we’re seeing today.

Now, to be clear, this doesn’t mean you should ignore what’s happening. That’s not the answer either. But there’s a big difference between reacting emotionally and responding strategically.

That distinction becomes even more important in retirement.

Once you’re taking income from your portfolio, the sequence of events matters far more than most people realize. The timing of market declines—especially when you’re withdrawing money—can have a significant impact on how long your money lasts.

This is known as sequence of returns risk.

In simple terms, it means that the order in which market returns occur matters. If you experience losses early in retirement while also taking withdrawals, the impact can be devastating. It can significantly increase the likelihood of running out of money.

Two retirees can have identical average returns over time, but if one experiences downturns early and the other later, their outcomes can be dramatically different.

That’s how powerful sequence of returns risk is.

If this concept is new to you and you’d like to learn more, I go into detail in my book, More Life Than Money. I’ll send you a free copy if you’d like one.

Just go to providencefinancialradio.com/book. Again, that’s providencefinancialradio.com/book. Leave your information, and we’ll send you a hardcover copy within a few days.

You’ll gain a deeper understanding of sequence of returns risk and how it can impact your retirement.

I’m Anthony Saccaro. Thank you for joining us today. We’re continuing our discussion about the war, market volatility, and how it impacts your retirement—not directly, but through your response to it.

Let’s move to a listener question from Linda in Thousand Oaks.

Linda writes: “I’ve been retired for about two years, and with everything going on, I’m getting nervous watching my portfolio go down. Should I be pulling back or doing something different?”

Linda, thank you for your question. What you’re experiencing is something nearly every retiree faces at some point—especially during periods of volatility.

The key is understanding what’s actually happening beneath the surface.

When you’re retired and taking income from your portfolio, a market decline isn’t just uncomfortable—it can create a compounding effect if not managed properly.

This ties directly back to sequence of returns risk. If markets decline early in your retirement while you’re withdrawing funds, it puts additional pressure on your portfolio.

So should you be doing something?

Yes—but probably not what you’re thinking.

This is not about selling everything or moving to cash. It’s about evaluating your plan.

You need to ask: what happens if the market drops another 10%, 20%, or more—and stays down for an extended period?

Would that impact your lifestyle?

That’s what your plan should tell you.

If your plan is designed to withstand those scenarios without disrupting your income, then you’re in a strong position. If not, then adjustments may be necessary.

The goal is to ensure your income strategy is aligned with reality. You don’t want to be forced into selling investments at a loss just to generate income. That’s exactly the situation you want to avoid.

A properly structured plan eliminates that risk.

If you’d like help understanding how to create an income plan that protects your principal while generating reliable income, we’ve created a free animated video.

Just go to providencefinancialradio.com/video, leave your information, and we’ll send it to you.

I’m Anthony Saccaro. Thank you for being here.

Let’s move to another question—this one from Mark in Valencia.

Mark asks: “With everything going on, should I just move everything into something safe until things settle down?”

Mark, this is one of the most common instincts during times like this. It sounds reasonable—but in practice, it’s very difficult to execute.

Why? Because you have to make two correct decisions: when to get out, and when to get back in.

Most people don’t get both right. In fact, many get both wrong.

They sell after the market has already dropped, then wait too long to reinvest. By the time they feel comfortable again, the market has already recovered—and they’ve missed the rebound.

The issue isn’t the desire for safety. It’s how you’re trying to achieve it.

If you don’t need income from your portfolio and you’re invested for long-term growth, then doing nothing is often the best course of action. Trying to time the market typically leads to selling low and buying high.

However, if you are taking income from your portfolio and a prolonged downturn would impact your lifestyle, then yes—it may be time to consider a change.

But not for the purpose of timing the market.

Instead, the shift should be from a capital appreciation strategy to an income-focused strategy—moving toward interest and dividends.

Many retirees are realizing right now that their portfolios aren’t invincible. The last decade has been strong, but conditions are changing.

If that’s your situation, this may be an appropriate time to reevaluate your strategy.

And if you want to learn more, I cover this in detail in my book, More Life Than Money. You can request your free copy at providencefinancialradio.com/book.

Let’s take one more question—this one from Carlos in Simi Valley.

Carlos writes: “I’m about a year away from retirement, and this volatility is making me reconsider everything. How do I know if my plan is actually safe?”

Carlos, this is an excellent question.

The first thing I’ll say is this: having a plan puts you ahead of many people. That’s a great starting point.

But to determine if your plan is truly safe, you need to answer one critical question: where will your income come from in retirement?

Not in theory—but specifically. Month to month. Year to year.

If your plan relies on market performance to generate income, then it’s not really a plan—it’s exposure.

Markets don’t move in straight lines. There will be volatility. There will be downturns.

Your income should not depend on those fluctuations.

A strong retirement plan provides predictable, stable income that is not tied directly to market performance. That’s what creates confidence.

Confidence doesn’t come from hoping things go well. It comes from knowing your plan can handle it when they don’t.

If you’re a year away from retirement, now is the perfect time to make adjustments and ensure your plan is built for both good markets and bad.

As we wrap up today’s show, remember this: uncertainty is not new. It has always been part of the equation.

Wars, recessions, financial crises, pandemics—there is always something.

The difference is not the uncertainty itself. It’s how prepared you are for it.

Instead of trying to predict what happens next, focus on whether your plan can handle whatever does happen.

That’s what retirement planning is all about.

If recent volatility has you feeling uneasy and you want to better understand how to build a reliable income plan, I encourage you to request a copy of my book, More Life Than Money.

Go to providencefinancialradio.com/book, leave your information, and we’ll send it to you at no cost.

Thank you for joining us today on the Providence Financial Retirement Show. I certainly hope you learned something that gives you greater clarity and confidence moving forward.

Have a great week. God bless.

Disclaimer: This transcript is provided for educational and informational purposes only and reflects a general discussion from a live radio broadcast. It is not intended as personalized financial, tax, or legal advice. Individual circumstances vary, and listeners should consult a qualified professional before making decisions.