Pain and Retirement Planning

Should Investing Hurt? Ask the “Queen of Pain”

Amelia Boone earned global recognition as a premier competitor in obstacle racing. Known in events like the World’s Toughest Mudder and the Spartan Race as the “Queen of Pain,” she thrives in settings that test endurance for 24 hours or more, with mud, walls, barbed wire, and even electrical challenges. When asked about her edge, Amelia famously said, “I’m not the strongest, I’m not the fastest, but I’m really good at suffering.” Her words offer a striking parallel for investing: long-term strength often comes from disciplined endurance, not instant shortcuts.

Life, in many ways, can resemble an obstacle course. We encounter trials, disappointment, illness, and uncertainty. Each of us faces moments that demand perseverance beyond comfort. Whether it was 2008, COVID, interest rate increases, or ‘Liberation Day’, the stock market regularly reminds investors that pain – in the form of drawdowns and volatility – can be a humbling but instructive teacher. The challenge isn’t whether pain will appear; it’s how we respond to it and whether we stay the course long enough to reap the eventual rewards.

Endurance is a useful lens for both fitness and investing. Weightlifting, for example, relies on controlled resistance: without it, there is no growth. Too little challenge, and progress stalls. The same principle applies to long-term investing. A well-designed plan accepts some volatility as a cost of potential growth, particularly when the goal is to preserve and grow wealth over decades, not days.

During periods of market stress, investors often face several difficult choices. Here are common paths and the considerations behind them:

• Go to cash. It’s tempting to seek immediate relief from market pain by moving investments into cash or money market funds. The danger is that trying to time the market often means missing the best days of recovery, which can leave portfolios lagging behind those that remained invested and disciplined through the storm.
• Shift to bonds. Rotating to bonds can seem prudent in a downturn, but in some past eras, interest rates have complicated that calculus. Getting bond durations wrong can erode bond values, depending on the direction of interest rate rises or declines. Bonds remain a tool, but not a guaranteed safe harbor.
• Explore fixed or fixed-indexed annuities. For many investors, annuities offer downside protection with the potential for growth, especially when used to complement a broader retirement strategy. These products aren’t universally appropriate, and they come with fees, guarantees, and surrender options that require careful review. A thoughtful fit – especially within an IRA or other eligible account – can provide a ballast against market volatility.
• Increase regular investments. For long-term investors who understand the market’s pattern of cycles, additional contributions during downturns can be a prudent strategy. The idea is to buy more shares when prices are lower, which can build a stronger base for recovery and future growth, assuming the investor’s time horizon remains aligned with the plan.

The overarching message is not a dramatic call for risk or bravado, but a reminder that durable wealth builds through disciplined perseverance. Your financial plan should reflect a balanced temperament: one that accepts risk as a cost of growth, maintains liquidity for life’s contingencies, and preserves a steady course through uncertainties.

If you’re navigating a period of volatility, consider your posture more than your impulses. Revisit your goals, review your time horizon, and confirm that your asset allocation remains aligned with your risk tolerance. Ensure your plan accounts for essential elements such as emergency reserves, tax-efficient strategies, and appropriate protections.

Our team is here to help you translate the realities of market cycles into a clear, actionable path. We can review your intermediate targets, stress-test scenarios, and adjust contributions to keep you on track toward retirement, education goals, or legacy planning. The objective is to build resilience so you can endure today’s challenges and still pursue tomorrow’s opportunities.

So yes, there will be pain in the journey. But with a thoughtful plan, a steady hand, and the right guidance, you don’t have to choose mud over clarity. You can embrace the process, stay the course, and come out stronger on the other side, perhaps not the strongest in the room, but certainly among the best prepared for what lies ahead. If you’d like to discuss how your plan can withstand volatility and still support your long-term goals, we’re here to help.