{"id":774542,"date":"2026-07-02T15:32:08","date_gmt":"2026-07-02T15:32:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/774542\/"},"modified":"2026-07-02T15:32:08","modified_gmt":"2026-07-02T15:32:08","slug":"im-two-years-from-retirement-and-my-portfolio-is-down-how-can-i-recover","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/774542\/","title":{"rendered":"I\u2019m two years from retirement and my portfolio is down. How can I recover?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Illustration by The Globe and Mail<\/p>\n

Q: My portfolio is down and I\u2019m only two years away from retirement. Are there strategies to help recover?<\/p>\n

We asked Leslie Logan, senior financial planner with TD Wealth, to answer this one.<\/p>\n

Market volatility can feel especially concerning as you approach retirement, Ms. Logan said, and this is exactly why it\u2019s important to plan for major life transitions well in advance.<\/p>\n

\u201cA key part of that planning is ensuring your portfolio reflects your evolving needs and comfort with risk,\u201d she said. As retirement nears, it\u2019s common to revisit your asset mix and rebalance accordingly, both from a financial and emotional standpoint. \u201cYou may feel differently about risk and return today than you did when your portfolio was first built.\u201d<\/p>\n

My wife only has GICs. What\u2019s the best way to get around Quebec\u2019s complex estate rules?<\/a><\/p>\n

Whether you need to make changes now depends on your portfolio and the role it\u2019s meant to play. \u201cIf your investments are structured to generate income, your day-to-day cash flow may be less impacted by market fluctuations and more tied to the income those investments produce,\u201d Ms. Logan said.<\/p>\n

If that\u2019s not the case, she suggested it may be worth revisiting your financial plan and investment strategy. \u201cIn retirement, the focus shifts from accumulation to deaccumulation \u2013 and your investment strategy should evolve alongside that shift.\u201d <\/p>\n

Here are the key questions Ms. Logan recommends asking yourself: <\/p>\n

What are your income needs in retirement?Where will that income come from?When will you need to begin drawing from your portfolio?<\/p>\n

It\u2019s also worth noting that many retirees don\u2019t immediately rely on their portfolios, she added, whether because of accumulated savings or temporary income sources, such as a defined benefit pension bridge. If you choose to retire or leave your job before the age of 65, a defined benefit pension bridge works as a temporary, additional amount of pension paid up to the age of 65 to \u201cbridge\u201d the income gap until regular retirement age (65), when the full amount of Canadian Pension Plan and Old Age Security kick in. One caveat: You have to be part of an employer-sponsored defined benefit pension plan. <\/p>\n

\u201cFor example, an additional $500 per month may be received until the age of 65, then drops off, leaving just the regular pension amount being paid after age 65,\u201d Ms. Logan explained. \u201cThis amount is age-based and is not reduced or eliminated if CPP is also taken before age 65.\u201d<\/p>\n

I\u2019m separated and want to buy my spouse\u2019s share of our home. How will this affect my retirement?<\/a><\/p>\n

Many retirees also choose to set aside one to two years of expected income in more stable investments. This, Ms. Logan said, can help reduce the need to withdraw during market downturns, easing both financial pressure and emotional stress.<\/p>\n

\u201cEven in retirement, your portfolio often needs to work for decades \u2013 so maintaining a long-term perspective remains just as important,\u201d she said. Periods of volatility are a natural part of investing, and a well-structured plan can provide the confidence to stay the course \u2013 helping protect the sustainability of your retirement rather than reacting to short-term market moves.<\/p>\n

\u201cSelling when it\u2019s down, unless there is an absolute need or a portfolio that is out of line with your goals and timelines, is almost never the best answer,\u201d Ms. Logan said. \u201cMarkets will swing one way or the other every day, month, year \u2013 the important thing is to be able to see the forest through the trees and not get caught up in the short term noise of it all.\u201d<\/p>\n

Do you want advice on a financial planning or retirement issue that\u2019s affecting you? Send us an e-mail<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Illustration by The Globe and Mail Q: My portfolio is down and I\u2019m…\n","protected":false},"author":2,"featured_media":460543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185,4825],"class_list":["post-774542","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-r-fp"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/774542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=774542"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/774542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/460543"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=774542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=774542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=774542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}