Why Even the Pros Struggle—And How to Win with Consistency Instead
Welcome to “Money Myths Retirees Still Believe”—a blog series that uncovers the hidden beliefs that can quietly sabotage your financial peace of mind.
Many retirees cling to common money myths that seem true but can lead to poor decisions, lost income, or unnecessary worry. Each post in this series explores one myth—like “cash is trash” or “I need to beat the market”—and replaces it with a smarter, simpler mindset.
If you’re retired or nearing retirement, this series will help you reassess your approach and feel more confident about your financial future.
The Myth: “I Can Time the Market”
When the stock market took a dip in early 2022, Tony—an energetic 66-year-old retiree—decided to sell most of his portfolio and “wait until things settled down.”
Six months later, the market had bounced back, but Tony hadn’t reinvested.
He was still waiting for “the right time.”
He missed the recovery. And now, he wasn’t sure what to do.
Like many retirees, Tony believed he could outsmart the market by getting out before a drop and back in before a rally.
👉 But timing the market is incredibly difficult—even for professionals.
And for retirees, it’s often not just hard—it’s harmful.
Why This Belief Feels So Tempting
Let’s face it—we all love the idea of making smart moves.
- “If I had sold before the crash, I’d be up big.”
- “I’ll just sit on the sidelines for a while, then jump back in.”
- “Once the economy feels safer, I’ll reinvest.”
But these feelings are based on hindsight and emotion—not reliable strategy.
The truth? Nobody consistently calls market tops and bottoms. Not even the experts.
And if you miss just a few of the best days in the market, your long-term returns can suffer dramatically.
The Smarter Mindset: Time In the Market Beats Timing the Market
Instead of guessing when to get in or out, successful retirees focus on:
- Staying invested through ups and downs
- Holding a mix of assets that match their goals
- Generating steady income from dividends, interest, or annuities
- Having a plan that lets them ride out market dips without panic
In short, consistency beats cleverness.
What Happens When You Miss the Best Days?
Let’s look at the data.
If you had invested $10,000 in the S&P 500 in 1990 and stayed fully invested through 2020, you’d have about $160,000.
But if you missed just the 10 best days during that time?
You’d only have $81,000.
Miss 20 days? Down to $52,000.
The biggest gains often come right after the biggest losses.
So when you jump out after a drop, you’re likely to miss the rebound.
A Real-Life Example
Marilyn, a 73-year-old retiree, used to stress about market swings. Every time the news turned negative, she’d think about selling.
But after working with a financial advisor, she switched to a strategy focused on income and long-term stability.
- She held dividend ETFs that paid her every quarter.
- She had 12 months of expenses in cash.
- She reviewed her portfolio only twice a year.
Now, when the market dips, she shrugs. “I don’t need to time the market,” she says. “My plan already includes the ups and downs.”
What to Do Instead of Timing the Market
Here’s how you can build a plan that doesn’t require a crystal ball:
✅ Use a diversified portfolio
Include a mix of dividend stocks, bonds, cash, and maybe even a small annuity.
✅ Set up automatic withdrawals
Create a reliable income stream from your investments. It’s easier to ignore the market when your bills are paid.
✅ Keep a cash cushion
Holding 6–12 months of expenses in cash or short-term bonds helps you avoid selling investments during downturns.
✅ Follow the Bucket Strategy
Divide your money into short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years) buckets. That way, you don’t have to sell long-term investments when markets are down.
✅ Stick to your plan
If your plan is solid, don’t let headlines or market noise push you to act on fear.
The Takeaway
Trying to time the market might feel smart—but it usually leads to missed gains, increased stress, and inconsistent results.
Instead, build a portfolio you can live with through market ups and downs.
Because in retirement, the goal isn’t to “win” the market.
It’s to make your money last—and let you sleep well at night.
Stay the course. Trust your plan. And remember:
Time in the market beats perfect timing every time.