Originally aired on KAOX, KID, KNRS, and KSL

Taking Control of Your Retirement: Navigating Market Volatility and Global Uncertainty

Originally aired June 28, 2025 on KAOX, KID, KNRS, and KSL
By Mike Stevens, Capital Wealth Advisors

In these unprecedented times of global conflict, supply chain disruptions, and economic uncertainty, Utah retirees are facing challenges that would have seemed unimaginable just a few years ago. The recent geopolitical tensions have sent shockwaves through financial markets, leaving many wondering if their retirement savings can weather yet another storm.

If you're feeling overwhelmed by the constant stream of negative headlines and worried about your financial future, you're not alone. The good news? There are concrete strategies you can implement right now to take control of your retirement planning, regardless of what global events unfold.

On our recent Retire Right Radio broadcast, we explored how smart planning and strategic diversification can help Utah retirees not just survive, but thrive during market volatility. Whether you're living in Salt Lake City, Provo, Logan, or any corner of the Beehive State, the principles we'll discuss apply to your unique situation.

Key Takeaways

• Market volatility from global conflicts is inevitable – but having a plan vs. just a portfolio makes all the difference • Diversification between protected and growth money is crucial for weathering storms without emotional decision-making • Fixed index annuities with zero floors can provide protection while still capturing upside potential (8-9% caps) • Tax planning opportunities emerge during market downturns, especially Roth conversions when account values are depressed • The March 2020 COVID crash demonstrated how quickly markets can fall (-34% in one month) and recover (+16% by year-end) • Fiduciary advisors are legally obligated to act in your best interests, unlike traditional brokers • Utah's tax-friendly environment makes strategic planning even more valuable for residents

How Global Conflicts Impact Your Utah Retirement Portfolio

Supply Chain Disruptions Hit Close to Home

When global conflicts erupt, the ripple effects reach well beyond distant shores. Here in Utah, we've seen firsthand how supply chain disruptions can impact everything from the cost of goods in our local Smiths and Harmons grocery stores to the availability of materials for Utah's booming construction industry.

These disruptions create market volatility that directly affects retirement portfolios. When supply chains are interrupted, it increases volatility and can lower stock values, creating a domino effect that touches every corner of the financial markets.

For Utah retirees, this presents a particular challenge. Unlike younger investors who have decades to recover from market downturns, retirees can't afford to wait 10-20 years for their portfolios to bounce back from poor timing or emotional decisions.

The Paralysis Analysis Trap

One of the biggest dangers during uncertain times is what we call "paralysis analysis." When fear takes hold, many retirees' first instinct is to move everything to cash and sit on the sidelines.

"It's like tossing a coin," as we discussed on the show. "50% you're right, 50% you're wrong. The market could go down and you're like, 'Whew, so glad I'm in cash,' or you could be sitting in cash and the market could continue to surge upward. And you're like, 'Oh, why did I do that?'"

This emotional response is completely natural – nobody has a crystal ball. But making major financial decisions based on fear rarely works out well. Utah retirees need a better strategy.

The Power of Protected vs. Growth Money Strategy

Beyond Traditional Diversification

Most financial advisors talk about diversification in terms of stocks, bonds, and international investments. While these elements have their place, we believe the most crucial diversification for Utah retirees is between protected money and growth money.

Here's how this strategy works in practice:

Protected Money:

• Fixed index annuities with a floor of zero (you can't lose money when markets decline)
• Cap rates typically between 8-9% on the upside
• Little to no fees
• Provides stable income source during market volatility

Growth Money:

• Traditional market investments (stocks, stock mutual funds, ETFs)
• Full upside potential during bull markets
• Subject to market volatility and potential losses
• Long-term growth vehicle

Real-World Application: The Apple Stock Example

Let's say you own Apple stock, and it drops 15% due to global uncertainty. If all your money is in growth investments, you might feel pressured to sell at a loss to generate needed retirement income.

With a protected vs. growth strategy, you simply leave the Apple stock alone and draw income from your protected accounts instead. "When the market goes down, you only have a loss if you sell when the market's down," as we emphasize to our clients.

Even better, if you don't need that income immediately, you can use distributions from your protected accounts to "buy the dip" – purchasing more shares while they're "on sale."

Dispelling Fixed Index Annuity Myths: The Hammer Analogy

Not All Annuities Are Created Equal

One of the biggest misconceptions we encounter among Utah retirees is the blanket fear of annuities. This stems from confusion about the different types available and their various purposes.

Think about it this way: if someone says "hammer," you might think of a sledgehammer. Someone else might think of a jackhammer. But I'm talking about a simple carpenter's framing hammer for driving nails.

The same principle applies to annuities:

Variable Annuities:

• Subject to market risk
• High fees (often 2-3% annually)
• No guarantee against losses

High-Commission Fixed Annuities:

• Often come with surrender charges
• May have caps as low as 3-4%
• Sales-driven rather than client-focused

Quality Fixed Index Annuities:

• Floor of zero (no losses in down markets)
• Caps of 8-9% in good markets
• Low to no annual fees
• No direct market risk

For Utah retirees concerned about sequence of returns risk – the danger of poor market performance early in retirement – quality fixed index annuities can provide the stability needed to avoid selling growth investments at the worst possible time.

Lessons from the March 2020 Market Crash

The Fastest Decline in U.S. Stock Market History

The COVID-19 pandemic provided a real-world stress test for retirement strategies. In March 2020, the S&P 500 fell 34% in just one month – the fastest decline in U.S. stock market history. This happened in just 22 trading days, creating widespread panic among investors.

Many Utah retirees who lacked proper planning were forced to sell investments at massive losses to generate needed income. Others panicked and moved everything to cash, missing the subsequent recovery.

The Remarkable V-Shaped Recovery

Here's what makes this period so instructive: Despite falling 34% in March, the S&P 500 finished 2020 with a positive return of 16%. This V-shaped recovery demonstrates why having a plan – not just a portfolio – is so crucial.

Our clients who had implemented the protected vs. growth strategy didn't need to sell their market investments during the crash. Instead, they drew income from their protected accounts and watched their growth investments recover and flourish.

Government Response and Unintended Consequences

The government's response to the pandemic – injecting trillions of dollars into the economy – led to the inflationary pressures we're still dealing with today. When there's too much money circulating in the economy, that creates inflation. To combat inflation, the government tightens monetary policy, which can lead to recession concerns.

This cycle of stimulus → inflation → higher interest rates is something Utah retirees need to plan for. It's likely we'll see similar patterns in response to future crises.

Strategic Tax Planning During Market Volatility

Why Taxes Are "On Sale" Right Now

One of the most overlooked opportunities during market downturns is strategic tax planning. The Tax Cuts and Jobs Act of 2017 significantly reduced tax brackets, but these provisions expire in 2026 unless extended by Congress.

Current tax brackets include:

• 10% (lowest bracket)
• 12% (up from the previous 15%)
• 22% (down from 25%)
• 24% (down from 28%)

If the Tax Cuts and Jobs Act isn't extended, we'll see these brackets revert to higher levels. The 12% bracket becomes 15%, 22% becomes 25%, and 24% becomes 28%. That's not just affecting "wealthy" taxpayers – these changes impact middle-class Utah retirees too.

The Roth Conversion Opportunity

Here's where market volatility creates a unique planning opportunity. Let's say your traditional IRA is worth $500,000, and the market drops 12% due to global conflicts. Your account is now worth $440,000.

This is actually the perfect time to consider a Roth conversion. You can:

1. Convert the depressed $440,000 balance (instead of the original $500,000)
2. Pay taxes on the lower amount
3. Move the money into a tax-free Roth IRA
4. When the market recovers, enjoy 100% tax-free growth forever

"We can't control the stock market – that's the dirty secret every financial advisor knows. But we can control taxes with intentional planning."

Utah-Specific Considerations

Utah residents enjoy several tax advantages that make strategic planning even more valuable:

• No tax on Social Security benefits (unlike many states)
• Relatively low state income tax rates
• No tax on retirement income from employer-sponsored plans after age 65
• Friendly estate tax laws

These benefits make Utah an excellent place to implement tax-efficient retirement strategies, especially when combined with federal planning opportunities.

The Critical Difference: Plans vs. Portfolios

Why Most Retirees Only Have Portfolios

One of the most important distinctions we make at Capital Wealth is between having a "plan" and having a "portfolio." Most Utah retirees we meet have portfolios – collections of investments chosen with the hope of generating good returns. Far fewer have actual plans.

A portfolio answers the question: "What investments do I own?"

A plan answers the questions:

• "Where will my income come from if the market drops 20%?"
• "How will I handle sequence of returns risk?"
• "What happens if I need long-term care?"
• "How can I minimize taxes on my retirement withdrawals?"
• "What's my strategy if inflation persists?"

Building Contingencies Into Your Plan

A proper retirement plan includes contingencies for various scenarios. When the March 2020 crash hit, our clients weren't asking "Should we be concerned?" They were asking "Which contingency plan do we implement now?"

That's the difference between having a plan and just hoping your portfolio performs well. Plans include multiple income sources, tax strategies, and flexibility to adapt to changing circumstances.

For Utah retirees, this might include:

• Protected accounts for bear market periods
• Growth investments for long-term purchasing power
• Tax-free accounts for future tax protection
• Healthcare planning for medical cost inflation
• Legacy strategies taking advantage of Utah's favorable estate laws

Understanding Fiduciary vs. Non-Fiduciary Advisors

The Legal Obligation That Changes Everything

Not all financial advisors are created equal, and the differences go far beyond experience or investment philosophy. The most important distinction is whether your advisor is a fiduciary.

Fiduciary advisors like Capital Wealth are legally, morally, and ethically obligated to act in your best interests. This isn't just a nice-to-have – it's a legal requirement backed by regulatory oversight.

Non-fiduciary advisors operate under a "suitability" standard. They must recommend investments that are suitable for you, but they're not required to choose the absolute best option available. This can create conflicts of interest, especially around commission-based products.

Why This Matters for Utah Retirees

Given the stakes involved in retirement planning, working with a fiduciary provides crucial protection. When you're dealing with life savings accumulated over 30+ years of working, you want someone legally bound to put your interests first.

This is especially important when considering products like annuities, where commission structures can vary dramatically. A fiduciary will recommend the annuity that best serves your needs, not the one that generates the highest commission.

Common Investment Mistakes Utah Retirees Make

The Emotion Factor

"The biggest mistake people make when investing on their own is emotion," as we've observed over two decades of working with Utah retirees. "It's difficult to see the forest when you're standing in the trees."

When you're managing your own investments, every market movement feels personal. A 10% drop might mean delaying retirement by six months to get back to even. This emotional weight can lead to poor timing decisions – buying high during euphoric periods and selling low during panic phases.

The Day Trading Temptation

Some retirees think they need to become day traders to generate adequate returns. This is exactly backwards. You should enjoy your retirement years, not spend them glued to financial news channels and trading platforms.

The stress of active trading can steal the very joy retirement is supposed to provide. Worse, studies consistently show that frequent trading reduces long-term returns due to poor timing and transaction costs.

The DIY Trap

While YouTube University can teach you almost anything, retirement planning isn't a good candidate for the do-it-yourself approach. "If you think hiring a professional is expensive, wait until you hire an amateur."

The stakes are simply too high. Unlike other areas where mistakes can be corrected over time, retirement planning mistakes often can't be undone. You don't get a second chance at your sixties and seventies.

Utah-Focused Q&A: Real Questions from Real Retirees

Linda from Draper Asks: "How do I know if my current advisor is looking out for me?"

Mike's Response: Great question, Linda. Here are five warning signs that you might need a new advisor:

1. Your eye is already wandering – if you're questioning the relationship, trust that instinct
2. They only call when they want to make trades – this suggests they're generating commission income rather than focusing on your needs
3. Your financial situation is changing, but the advice isn't – a good advisor adapts strategies as you move from accumulation to distribution
4. They don't listen to you – you're the boss, not the advisor
5. You're afraid to call them – this should never be the case with your financial professional

At Capital Wealth, we believe in relationships, not transactions. You should feel comfortable reaching out with questions anytime.

Gerald from Logan Asks: "With all the talk about inflation, should I be worried about my fixed income investments?"

Mike's Response: Gerald, inflation is definitely a concern for Utah retirees, especially those on fixed incomes. The government's response to recent crises has injected massive amounts of money into the economy, and basic economics tells us this creates inflationary pressure.

However, some fixed index annuities offer inflation protection through their participation in market upside. While you're protected from losses with a zero floor, you can still benefit from market gains up to the cap rate (typically 8-9%). This gives you some inflation hedge while maintaining downside protection.

The key is not putting all your eggs in one basket. A balanced approach with both protected and growth components can help address inflation concerns while managing volatility.

Sarah from Park City Asks: "I keep hearing about Roth conversions. How do I know if they make sense for my situation?"

Mike's Response: Sarah, Roth conversions are incredibly powerful tools, but they're not right for everyone in every situation. Here's what we analyze when reviewing conversion opportunities:

Consider conversions when:

• You're in a relatively low tax bracket currently
• You expect to be in a higher bracket later (or tax rates to rise generally)
• Your traditional IRA/401(k) has declined in value due to market conditions
• You have non-retirement funds available to pay the conversion taxes

Be cautious when:

• A large conversion would push you into a much higher tax bracket
• It might affect your Medicare premiums two years from now
• You don't have funds outside retirement accounts to pay the taxes

At Capital Wealth, we create what we call a "Retirement Tax Map" to identify the optimal conversion amounts and timing for each client's unique situation.

Robert from Ogden Asks: "I'm 67 and still working. Should I delay Social Security to get the larger benefit?"

Mike's Response: Robert, this is one of the most common questions we get from Utah retirees. The answer depends on several factors specific to your situation:

Reasons to delay:

• You're in good health with family longevity
• You don't need the income immediately
• You're still earning good money from work
• Your spouse will benefit from the higher survivor benefit

Reasons to claim now:

• You need the income
• Health concerns might limit your lifespan
• You want to invest the benefits while continuing to work

In Utah, Social Security benefits aren't subject to state income tax, which makes the decision a bit easier than in other states. We typically run a break-even analysis to show when delayed benefits would overtake earlier claiming strategies.

Michelle from St. George Asks: "My husband handles all our finances. What happens if something happens to him?"

Mike's Response: Michelle, this is such an important question, and you're wise to think about it. We see this situation frequently – one spouse is the "financial spouse" while the other focuses on different areas.

Here's what we recommend:

1. Both spouses should be involved in annual review meetings – even if one takes the lead day-to-day
2. Create a written financial inventory – account numbers, passwords, advisor contact information
3. Establish relationships with your advisory team – so the surviving spouse isn't dealing with strangers during grief
4. Document the overall strategy – not just what accounts you have, but why certain decisions were made

At Capital Wealth, we always encourage both spouses to attend meetings, even if one is less interested in the details. We want to ensure both partners understand the overall plan and feel comfortable with the strategy.

Frequently Asked Questions About Utah Retirement Planning

Q: How much should I have saved for retirement in Utah?

A: While traditional rules suggest needing 70-80% of pre-retirement income, Utah's tax advantages might allow for a lower target. Since Utah doesn't tax Social Security benefits and has favorable treatment of retirement account distributions after age 65, your replacement ratio might be closer to 60-70%. However, this varies significantly based on your specific lifestyle goals, healthcare needs, and legacy objectives.

The more important question is: "Do you have a plan that accounts for market volatility, inflation, taxes, and healthcare costs?" The amount needed depends heavily on how efficiently your money is positioned.

Q: What makes Utah different for retirement planning compared to other states?

A: Utah offers several retirement-friendly features:

• No state tax on Social Security benefits
• No state tax on retirement distributions after age 65 (from employer plans)
• Relatively low overall tax burden
• Lower cost of living compared to coastal areas
• Excellent healthcare infrastructure
• Family-friendly culture that values supporting aging parents

These factors can significantly impact your retirement planning strategy and required savings targets.

Q: Should I be concerned about sequence of returns risk?

A: Absolutely. Sequence of returns risk – the danger of poor market performance early in retirement – is one of the biggest threats to retirement security. This is where the protected vs. growth money strategy becomes crucial.

If you retire at the beginning of a bear market and need to sell investments for income, you can permanently impair your portfolio's ability to recover. Having protected income sources allows you to ride out market volatility without forced selling.

Q: How do I know if my retirement plan is stress-tested?

A: A properly stress-tested plan should answer these questions:

• What happens if the market drops 30% in year one of retirement?
• How will you generate income without selling depreciated assets?
• What if inflation averages 4% instead of 2%?
• How will tax rate increases affect your withdrawals?
• What if one spouse needs long-term care?

If your current plan doesn't address these scenarios, it may be more of a portfolio than a true plan.

Q: What's the difference between working with a local Utah advisor versus a national firm?

A: Local Utah advisors understand state-specific planning opportunities and challenges. They're familiar with Utah's tax laws, cost of living variations between different areas of the state, and local resources for retirees.

National firms may offer more resources but might miss Utah-specific planning opportunities. The key is finding an advisor – local or national – who operates as a fiduciary and has expertise in retirement distribution planning.

Q: How often should I review my retirement plan?

A: At Capital Wealth, we conduct strategic review meetings at least twice per year. This frequency allows us to:

• Adjust for market changes
• Implement tax-saving strategies
• Address life changes (health, family, goals)
• Take advantage of new opportunities

However, major life events (health changes, family situations, tax law changes) might require more frequent reviews.

Q: What should I look for in a retirement advisor?

A: Key criteria include:

• Fiduciary obligation – legal requirement to act in your best interests
• Retirement specialization – distribution planning is different from accumulation
• Fee transparency – you should understand exactly how they're compensated
• Communication style – regular contact and education, not just annual statements
• Planning focus – emphasis on comprehensive planning, not just investment management

Remember, you're not just hiring someone to pick investments – you're hiring someone to help navigate one of life's most important transitions.

Q: Is it too late to start retirement planning if I'm already retired?

A: It's never too late! Even if you're already retired, there are numerous optimization opportunities:

• Tax-efficient withdrawal strategies
• Social Security maximization (if not already claimed)
• Healthcare and long-term care planning
• Legacy planning optimization
• Inflation protection strategies

Many retirees discover significant improvement opportunities even years into retirement.

Take Control: Your Next Steps

The Retirement Money Map Process

At Capital Wealth, we've developed what we call the Retirement Money Map – a proprietary, comprehensive planning process that goes far beyond traditional portfolio management. This isn't a product we sell; it's a planning methodology we use to help Utah retirees build robust, flexible retirement strategies.

The Retirement Money Map process includes:

1. Comprehensive financial inventory – understanding exactly what you have
2. Cash flow analysis – mapping income needs throughout retirement
3. Tax optimization strategy – minimizing lifetime tax burden
4. Risk assessment – identifying and planning for potential challenges
5. Implementation roadmap – step-by-step action plan
6. Ongoing monitoring – regular reviews and adjustments

Why Now Is The Time To Act

Global uncertainty isn't going away. Whether it's geopolitical conflicts, supply chain disruptions, inflation concerns, or the looming expiration of current tax laws, Utah retirees face a complex landscape that requires professional navigation.

The good news is that uncertainty also creates opportunities – for tax planning, for strategic positioning, and for building more resilient retirement plans. But these opportunities don't wait for perfect timing or complete clarity about the future.

"Markets go up and markets go down. A market doesn't just go up forever. So you want to have a plan and contingencies built into the plan."

The Cost of Waiting

Every day you delay implementing a proper retirement plan is a day you're potentially missing tax-saving opportunities, optimization strategies, and risk management benefits. More importantly, it's a day you're carrying unnecessary stress about your financial future.

The Utah retirees who weather market storms best aren't those who got lucky with their investment picks – they're those who built comprehensive plans before they needed them.

Your Investment in Peace of Mind

More Than Just Financial Returns

When we talk about the value of professional retirement planning, the conversation often focuses on investment returns, tax savings, and fee structures. While these elements matter, the most valuable benefit might be something harder to quantify: peace of mind.

Retirement should be the best years of your life. You've worked 30+ years to reach this point. You deserve to enjoy it without constantly worrying about market volatility, tax changes, or whether your money will last.

A proper retirement plan provides the confidence to:

• Take that trip to visit family in California without worrying about market timing
• Help your grandchildren with college costs without jeopardizing your security
• Focus on health, family, and personal fulfillment instead of investment management
• Sleep well knowing you have contingencies for various scenarios

The Relationship Advantage

At Capital Wealth, we believe in relationships, not transactions. This philosophy shapes everything we do:

• We know our clients personally – not just their account balances
• We're accessible – our clients can reach us when they have questions
• We educate – helping you understand not just what we're doing, but why
• We adapt – adjusting strategies as your life and goals evolve

When you call our office, you're not reaching a call center where you explain your situation to a different person each time. You're reaching a team that knows your goals, your concerns, and your family situation.

Special Offers for Utah Radio Listeners

Complimentary Retirement Money Map

For the next five callers who mention this radio program, we're offering something we normally provide only to our existing clients: a complimentary, comprehensive Retirement Money Map.

This proprietary planning process typically takes our team several hours to complete and includes:

• Complete financial analysis of your current position
• Tax optimization review identifying potential savings opportunities
• Cash flow modeling for various retirement scenarios
• Risk assessment highlighting potential challenges and solutions
• Written action plan with specific next steps

This is not a sales presentation. We will not try to sell you anything during this process. It's a genuine planning service we're extending to Utah radio listeners who want to explore whether better strategies exist for their situation.

What to Expect During Your Visit

Your complimentary consultation will be approximately 45-60 minutes with Mike Stevens or a member of our senior planning team. We'll ask you to bring:

• Recent tax returns (you can redact personal information like Social Security numbers and addresses)
• Current investment statements
• Information about employer benefits and Social Security projections
• Questions or concerns about your retirement planning

We'll analyze your situation and provide specific, actionable recommendations – regardless of whether you choose to work with us going forward.

Contact Information and Next Steps

Ready to Take Control?

If you're tired of worrying about market volatility, wondering whether your current advisor is truly looking out for your best interests, or simply want a second opinion on your retirement strategy, we invite you to reach out.

📞 Call: 801-210-5500
📱 Text "VISIT" to: 801-210-5500
🌐 Visit: capitalwealth.com

Our team is standing by to answer your questions and help you determine if our approach might be a good fit for your situation.

What Makes This Opportunity Different

Unlike many financial firms, Capital Wealth specializes exclusively in retirement planning for people nearing or already in retirement. We're not trying to be everything to everyone – we focus on what we do best: helping Utah retirees navigate the transition from accumulation to distribution.

As fiduciaries, we're legally obligated to put your interests first. This isn't just a marketing slogan – it's a regulatory requirement that shapes every recommendation we make.

Remember: You've worked too hard and saved too long to leave your retirement to chance. Take the first step toward taking control of your financial future.

Conclusion: Your Best Retirement Awaits

The global uncertainties that dominate today's headlines don't have to derail your retirement dreams. While you can't control geopolitical events, market volatility, or government policy changes, you can control how well-prepared you are to handle these challenges.

The Utah retirees who thrive in uncertain times aren't those who got lucky – they're those who planned ahead, built robust strategies, and worked with professionals who understand the unique challenges of retirement planning.

The difference between a comfortable retirement and a stressful one often comes down to having a plan, not just a portfolio.

Whether you're dealing with the recent market volatility, concerned about future tax increases, or simply want the peace of mind that comes from knowing you're properly prepared, professional retirement planning can make all the difference.

Your retirement should be a time of fulfillment, family, and freedom – not financial worry. With proper planning, it absolutely can be.

Take the first step today. Your future self will thank you.

Capital Wealth Advisors is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered through Capital Wealth Advisors LLC, a state of Utah registered investment advisor. Insurance services offered through CWA Insurance Services LLC. Investing involves risk, including the potential loss of principal. Any references to protection, safety, or lifetime income generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims-paying abilities of the issuing carrier.

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