By Elizabeth O'Brien
A weak jobs report and the war in Iran sent stocks sliding Friday, a queasy-making move for retirees living off their portfolios. But it's best not to make any big changes.
The economy shed 92,000 jobs last month, the Bureau of Labor Statistics said Friday, coming much weaker than analysts' expectation of a 60,000 gain. The Dow Jones Industrial Average slid about 1.2% and the S&P 500 fell 1.1% on Friday Meanwhile, oil soared past $90 a barrel on tensions in the Middle East and the effective shutdown of the Strait of Hormuz, a major shipping route.
"Geopolitical events always make people uneasy, because there is so much uncertainty," says Stephanie Temporiti, wealth advisor with Hightower Signature Wealth in St. Louis. "The natural question is, should I be doing anything?"
You definitely don't want to do anything drastic, like shift your money to cash. While it might feel safest in the moment, if you park in cash you'll close off the possibility of gains. This market is volatile, but the S&P 500 is still up around 18% over the past 52 weeks.
That's a far cry from a bear market, which is characterized by a market decline of 20% or more. Bear markets are no fun, but even they don't last forever. Based on the last 12 bear markets, they last an average of about 14 months, according to Charles Schwab.
To weather a possible downturn, many advisors recommend that retirees keep a cash cushion of at least two years' worth of portfolio withdrawals. This is the amount you need to meet living expenses after factoring in Social Security and any other income sources. Hold it in a cash or cash equivalents like a money market fund--still yielding attractive rates of around 3.5% -- or short-term Treasury bonds. That way, you don't have to withdraw money from a declining portfolio, a surefire way to deplete your savings quicker.
It's better to play defense rather than offense in this environment. Investing in oil looks tempting, as Brent crude surpassed $90 a barrel for the first time in two years, with no signs of slowing down. But commodities can go down as quickly as they come up, says Chris Kampitsis, a certified financial planner with Barnum Financial Group's the SKG Team in Elmsford, N.Y.
"For the average, typical retiree, it's a mistake to try to chase that hot hand at these levels," Kampitsis says.
Write to Elizabeth O'Brien at elizabeth.obrien@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 06, 2026 12:39 ET (17:39 GMT)
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