All of the news about tariffs is rattling investors and sending the stock on a wild ride.

President Donald Trump’s reciprocal tariffs on numerous countries were set to go into effect on April 9. But he announced a 90-day pause on all of them except China, which he increased to 125%. Because tariffs often lead to higher costs for consumers and can make markets more unpredictable, it led to massive panic and sell-offs within the stock market. 

After last week’s “Liberation Day,” markets plummeted, with the S&P 500 — a benchmark for US stocks — reaching bear market territory early Monday morning. There’s also been a lot of panic and fear of a recession, which experts say is becoming more likely, and what that means for long-term investments like your retirement savings.

As a self-made millionaire and personal finance coach who’s significantly grown her investments through the stock market, you’d probably think this news is sending me into a downward spiral — especially as I’m retiring this year. 

In times of market volatility and economic uncertainty, it’s easy to get caught up in fear and start questioning every investment decision you’ve made. But panic is not your friend when investing. 

Here’s what I recommend doing now to prepare for more market turbulence, especially if you’re planning to retire this year, like I am. 

What to do with your investments if you plan to retire soon 

If you’re planning to retire this year and your retirement accounts have taken a dip, the most important thing is not to panic or make sudden changes. Temporary losses don’t have to derail your retirement goals. Here’s what I’m doing instead.

Start by reviewing your withdrawal strategy. For example, I am pulling from cash reserves this year to give my stocks time to recover. Now is a good time to reassess your short-term cash needs, and make sure your retirement plan still works in today’s economic conditions. 

If you don’t have enough cash to cover your necessary expenses this year, now’s a good time to save and review your portfolio with an experienced financial advisor. Work together to determine your retirement timeline and risk tolerance so you can figure out the next steps for your money.

I also recommend delaying big-ticket purchases and any large withdrawals until the market stabilizes. I’m holding off on some travel this year and planning for 2026 instead.

Market volatility can be scary but it’s also normal. That’s why I teach my clients to build a solid investment strategy that can weather turbulent stock market storms. Here are some pointers to help you avoid panic the next time the market takes a dive.

Keep a month of expenses in your checking account

You need enough money to pay your regular monthly bills before investing in the stock market. That’s why I have my cash flow cushion — one month’s worth of living expenses — in my regular checking account where I typically pay my bills.

This cushion guarantees me easy access to cash for everyday expenses without needing to dip into my savings or investments. If you don’t have this cushion already, I highly recommend you build this into your financial plan. Start by adding up your monthly expenses and work toward saving up to this number over time. 

Create a ‘stuff happens’ fund to withstand market dips

In addition to my cash flow cushion, I stash at least one more month’s worth of expenses in a high-yield savings account. Rather than referring to this as an emergency fund, I call it my “stuff happens” fund, because accessing this financial safety net doesn’t have to be a life-or-death event, like a job loss.

If you don’t have any debt, bumping this up to three months or more will give you more runway to make investment decisions calmly. Stick to planning and updating your monthly budget. Chances are, your budget for the rest of the month has nothing to do with the stock market. 

If you have debt, don’t focus on the market until your everyday expenses are in order.

What to do if you’re not retiring this year 

If your retirement timeline is five or more years in the future, focus on long-term growth and don’t panic about the current market noise. Here’s my advice.

Invest wisely for the long-term 

The stock market can be a powerful tool for building wealth but it’s not a guaranteed way to make money, particularly if you’re investing all of your money directly in stocks or for short-term goals.

I only invest money that I can afford to lose and let grow for at least 10 years or more. That’s why the bulk of my investments are in tax-advantaged retirement accounts like our 401(k) account.

When the stock market falls, it can be tempting to “buy the dip” and take advantage of “sales” on stock. But you shouldn’t do so if you don’t have savings or have credit card debt of any kind. You also should avoid buying the dip if you have other loans, such as personal or car loans, or medical debt. Instead, I recommend focusing on guaranteed returns like building your cash savings for emergencies and paying off unnecessary debt to be better prepared when you’re ready to retire.

Use the dollar-cost average strategy, no matter what

One of the best strategies for anxiety-prone people like me to hedge against market volatility is dollar-cost averaging. Dollar-cost averaging is like buying your favorite candy with your allowance. Instead of spending all your money at once, you buy a little bit of candy every week at a fixed price, say $50. Some weeks, the candy costs more, and other times it’s less. The goal is to spread out your purchases over time so you end up with more candy when it’s cheaper and less when it’s more expensive. This way, over time, you get the most candy for your money without worrying about when to buy.

Over time, this strategy can lower the average cost of your investments and take the guesswork out of trying to time the market — something even experts struggle to do. I made that mistake before and I learned the hard way not to do it again. 

Now, my husband and I maximize our individual retirement accounts and 401(k)s every year by investing the same amount at regular intervals. My husband makes investments semimonthly, and I do so monthly as a business owner. We’re both contributing the maximum IRS limit for this year, which is $23,000 each. By investing a fixed amount regularly, you buy more shares when prices are low and fewer when prices are high.

Stay informed, not overwhelmed

It’s important to stay informed about the market but there’s a fine line between staying informed and becoming overwhelmed. Choose reliable sources of information and avoid sensationalist news that thrives on fear. I don’t talk about money with other investors who thrive on drama. I also recommend reviewing your investments monthly or quarterly, not daily or weekly. I only look at my investments when I’m in a calm state of mind during my monthly budgeting routine

Before you rush into fear-based market moves, make sure you have a strong financial foundation: cash stashed in savings, reduced dependency on debt and a budget routine that works for you in good times and bad. When these are in place, you can weather the market’s inevitable ups and downs with confidence rather than fear.