Control What You Can Control: 5 Things to Consider in a Volatile Market
- David Gourley
- Apr 7
- 5 min read
The last few days (and weeks) have been extremely tough for those who are invested in the stock market. We have seen price drops that many of us, myself included, have never seen in such a short period of time.
I was not invested in the 2008-2009 recession, and have only been able to read about how others felt during that time. The dip in March 2020 was short-lived, and the long burn of a downturn in 2022 has since been forgotten by many, as we saw a boom in the markets from 2023 and 2024.
When the stock market takes a dip or headlines start screaming about economic uncertainty, it’s easy to feel like everything is out of your control. For teachers and public servants, especially those nearing retirement, this can create a lot of anxiety.
So, my recommendation is: focus on what you can control.
Instead of reacting emotionally to short-term market swings, focus on the parts of your financial life you can influence. These are the habits and decisions that, over time, lead to long-term success, regardless of what the market is doing today.
I had a conversation on this exact topic with a friend who runs the Financially Independent Teachers Podcast, if you would prefer to listen rather than read the blog post!
Whether you're just getting started, mid-career, thinking about retirement, or retired, these five strategies can help you take meaningful action even when the world feels uncertain.
1. Set Up Automatic Investments
What is one of the best things you can do during a market downturn?
Keep investing.
Even better, make it automatic.
When you automate your investments (whether it's through a 403(b), 457(b), IRA, or brokerage account), you remove emotion from the equation. And when markets are down, your money buys more shares. This is called dollar-cost averaging, and over time, it can help you to grow significant wealth.
Still working? This is the perfect time to keep buying at a lower price.
Set it, forget it, and let the market do its thing.
2. Consider Your Lifetime Tax Bill
Pretty much every money move we make has a tax consequence. I like to use a market downturn to look for options to improve the lifetime tax bill that we will all pay.
Here are a few strategies worth exploring:
Roth Conversions: Moving money from a traditional IRA to a Roth IRA during a down market can get you more shares converted at the same cost. If you are considering converting $20,000, you will be able to convert more shares while paying the same amount of tax in the conversion!
Tax-Loss Harvesting: Selling investments at a loss in a taxable brokerage account can offset gains and reduce your taxable income (up to $3,000 in a tax year).
Roth vs. Traditional Contributions: Are you better off paying taxes now or later? The answer may depend on your income level, future tax brackets, and retirement timeline. This is especially important to consider if you will be receiving a sizeable pension in your retirement years.
If you’re unsure which strategy makes sense, this is where financial planning can be incredibly valuable. Every teacher’s situation is different.
Need help working through this?
Schedule a consultation and we can discuss if working together makes sense!
3. Reassess Your Asset Allocation
Ask yourself: Do your investments match your risk tolerance and time horizon?
Your asset allocation, aka how your money is divided between stocks, bonds, and other investments, is one of the biggest drivers of long-term success. But we tend to only really find out what an appropriate risk tolerance is when the markets drop.
Your asset allocation should reflect your purpose for the money, when you plan on using it, and based on your goals, both long-term and short-term.
Having a separate bucket of cash can be equally important. Having at least 6-months worth of expenses in a high-yield savings account can give you peace of mind, knowing that you can pull from that account in a down market and not have to sell your stock positions at a loss.
Equally important is knowing what asset classes you will pull money from when you do need to take a distribution.
All of these can help reduce anxiety when you see the overall account balance fall in a market downturn.
Don't guess at your plan.
4. Build a Financial Plan Around Your Pension + Savings
Teachers in pension systems like PSRS (Missouri), STRS, TRS, and others often ask: “How much do I really need to save for retirement?”
The answer depends on your:
Expected pension income
Retirement age
Healthcare costs
Lifestyle goals
Additional savings (403(b), IRAs, brokerage accounts)
Having a financial plan that combines your pension with other retirement income sources can remove so much stress. You’ll know exactly what’s coming in, what’s going out, and how much you need to save to bridge the gap.
Having a plan creates peace of mind, even during uncertain markets.
5. Stop Trying to Time the Market
We’ve all heard the saying: “Buy low, sell high.”
But here’s the problem—timing the market means getting it right twice:
You have to know when to sell before a downturn.
You have to know when to buy back in before it rebounds.
Most professionals don’t get this right consistently. And when individual investors try, they often lock in losses and miss the recovery.
From a behavioral perspective, putting money back in at a low point can be one of the most challenging things to do. First off, how do you know we’ve reached the bottom? Second, in the time of the most chaos and confusion, would you be willing to actually make that move?
History shows that missing just a few of the best days in the market can drastically reduce your long-term returns. Stay invested, stay diversified, and zoom out.
Final Thoughts
It’s easy to feel powerless when markets drop and you are getting bombarded with negative news constantly. But the truth is, you’re not powerless.
You can:
✅ Invest consistently
✅ Consider your lifetime tax bill
✅ Revisit your asset allocation
✅ Build a financial plan that makes sense for you
✅ Ignore the noise and focus on your future
If you’re feeling anxiety from the current market noise, or if you just want someone in your corner who understands what it’s like to be a teacher trying to make smart money decisions, I’m here to help.
Let’s work together to build a plan that gives you clarity, confidence, and control.
David Gourley, CSLP® is the Founder and lead Financial Planner at K-12 Planning, an independent financial planning firm specializing in finance for teachers. He served for eight years as a high school mathematics teacher before transitioning into the financial services industry. He started K-12 Planning in 2024 and his passion for serving as a fiduciary for teachers and a student loan planning expert runs deep, as his wife and several other family members have served as educators for years.
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