Crash Coming? Here's How to Save Your Retirement!

🧠 “Everyone’s a genius in a bull market—until it crashes.”

🖥️ Reading time: 5 minutes

Most folks don't think about protecting their retirement accounts until it’s too late. Then they panic. But real wealth is built by having a plan BEFORE the storm hits.

If you’re wondering what happens to your 401(k), IRAs, and 403(b) when the market tanks—and more importantly, how to protect it—this one’s for you.

Let’s break it down:

🎯 1. Set a Clear Goal Before You Touch a Single Investment

If you don’t know what you’re aiming at, you’ll miss. Every. Time.

Do you want to retire at 60? Cool. How much will you need per month? Per year? What’s your Financial Independence Score? Without knowing your number, you can’t measure damage during a crash—or progress during a boom.

📌 Pro tip: Investing isn’t about chasing hot stocks. It’s about hitting YOUR number. Get clear on your goals, set your timeline, and have a Plan B. What to know more? Sign up for my FREE Beginner Investing Master Class.

🧺 2. Diversify Like Your Retirement Depends on It (Because It Does)

Stocks go up—and yes, they come crashing down, too.

That’s why asset allocation matters more than stock picking. Split your investments between different ETFs, and maybe some cash, depending on your age and risk tolerance.

👶 Younger? Ride out the dips.
👴 Closer to retirement? Add more bonds and cash-equivalents.

🚨 And if your company stock is more than 10% of your retirement accounts. That’s a red flag. One bad quarter, and your retirement AND your paycheck take a hit.

😱 3. Don’t Panic. Seriously.

When the market drops 30%, it feels like your 401(k) and/or your IRA just vanished. But here’s the deal:

📈 The market has always recovered.
🛑 The only way you lock in losses is by selling low.

Even during COVID in March 2020, when the S&P 500 dropped 34%, 98% of 401(k) holders didn’t touch their accounts. And guess what? The market bounced back.

👉 Pro Tip: Stay invested. Review your plan, not your emotions.

💰 4. Keep Investing—Even When It Hurts

When the market crashes, it’s a fire sale on future wealth. Would you stop buying gas because it got cheaper? No. So, why stop investing when stocks go on sale?

💥 Keep your contributions going. All of them, not just your 401(k) or IRA.
💥 Max out your 401(k) employer match—it’s FREE money.
💥 If you can swing it, increase your contributions during crashes.

👉 Pro Tip: Buy low, stay the course, and let compound interest do its thing.

💡 5. What Happens If the Market Crashes?

If you're holding stocks, expect short-term losses. But unless you're cashing out right now, it’s mostly just noise. Just like a boat cruise on the waves. You’ll go down a few times, but you’ll also come back up again.

Got time before retirement? Keep buying. Stocks are on sale.
Nearing retirement? Do not sell! Look at your options. Can you draw money from elsewhere? Can you reduce your expenses in the short term? 

❌ 6. Should You Cash Out?

Nope. Not unless you love:

• Paying income tax
• Getting slapped with a 10% early withdrawal penalty
• Selling low and missing the rebound

That’s a triple whammy that can nuke your retirement dreams.

📉 7. Can You Stop a Retirement Accounts From Losing Money?

You can’t stop a market dip, but you can diversify smartly, keep your cool, and stick to your long-term strategy.

And yes, you could move everything to cash, but that’s not investing. That’s hiding, and inflation will find you.

🔁 Final Thoughts: Crashes Are Temporary, Regret Lasts Longer

Look—markets crash. That’s what they do.

But every bear market has eventually been followed by a bull. The only people who lose are the ones who panic, sell low, and never get back in.

You don’t need to be perfect. You just need to be consistent. And calm.

🎯 Know your number.
🧠 Stick to the plan.
💪 Keep investing.

✅ Sign up for my FREE Beginner Investing Master Class 

✅ Take advantage of my FREE Financial Freedom Faster eBook

✅Get in touch

That’s how you protect your retirement accounts and build real wealth—regardless of what the market throws at you.

- Steve

Disclaimer:

The following article is strictly the opinion of the author and is not to be considered financial/investment advice. CTL Community LLC and the author of this article do not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.  "Call to Leap may earn affiliate commissions from the links mentioned. Call to Leap is part of an affiliate network and receives compensation for sending traffic to partner sites such as ImpactRadius, CardRatings, MyBankTracker, and more."