Key Takeaways
- Constantly reacting to headlines can undermine long-term retirement security, so it’s important to know when you should tune out the noise.
- If you’re feeling unsure, a financial plan helps you stay disciplined and avoid emotional decisions.
- News matters most when it reflects sweeping changes to tax law or real policy changes, such as interest rate shifts.
Retirement planning can feel stressful in today’s 24/7 news cycle. Markets move on every headline, and many retirees instinctively adjust their portfolios in response. But financial advisors warn that reacting to short-term news can do more harm than good—pushing you to invest emotionally or err more conservatively than you should.
“I often notice clients paying close attention to the short-term impact of news on their portfolio, without always considering how those moves might affect their long-term plans,” says Elaine King of Family and Money Matters. “When that happens, I explain how reacting too quickly can increase the risk of depleting their assets during the years they’ll rely on them most.”
Why Turning Off the News Is Often the Best Investment Advice
Constantly worrying about your finances because of the latest headlines rarely pays off—and it can even be detrimental to your financial well-being. “Making decisions based on recent news leads you to chasing returns, and that can be harmful to a retirement portfolio,” says Den Murley, a financial planner at Belonging Wealth Management.
Emotional investing can also lead you to holding too much cash and missing out on crucial returns and compounding. “Not to mention your quality of life is on a constant emotional roller coaster,” Murley adds.
Kevin C. Feig, founder of Walk You To Wealth, compares it to horse racing. “If you’ve ever watched the Kentucky Derby, you’ve likely noticed that horses typically wear blinders. This same concept applies to building wealth: It requires you to stop dwelling on the past, ignore present distractions, and concentrate on the path forward,” he says.
What You Should Do Instead
Instead of reacting, focus on what you can control: a clear financial plan, balanced allocation, and long-term goals. “Retirement planning is about planning, not reacting,” Murley says. With a plan in place, you understand your “retirement’s tension tolerance,” so the latest headline doesn’t feel like a crisis. Feig suggests three elements for effective “financial blinders”: a defined plan, cutting out the noise by turning off pundits, and having an accountability partner. A trusted advisor, he says, should be like Waze—helping you navigate detours without losing sight of the destination.
King, for example, often sees retirees zero in on one part of their portfolio instead of the bigger picture. To help them understand their full finances, she guides clients through a comprehensive net worth review—looking at their investments, real estate, business interests, and other assets—to show where they may be overexposed or underexposed. That broader lens helps them see past today’s market swings.
10%
The number of active traders who beat the market consistently on a long term basis is well under 10%.
When the News Does Mean Changes for Your Portfolio
Of course, not every headline can be ignored. Murley stresses there are “absolutely times when the news will impact a retiree’s plan.” For example, the recent One Big Beautiful Bill Act permanently extended lower income tax rates and added new deductions for older taxpayers—changes that directly affect how much pre-retirees and retirees owe when they tap retirement accounts. Meanwhile, earlier legislation like the SECURE 2.0 Act raised the required minimum distribution (RMD) age and expanded catch-up contributions, giving savers more time and flexibility to build their nest egg. Murley notes that moments like this are an opportunity “to evaluate and make calculated tweaks to a plan if desired.”
Other news worth noting includes interest rate shifts from the Federal Reserve, major market shocks like those during the COVID-19 pandemic, or company-specific developments if you hold concentrated stock. These aren’t everyday market jitters but structural changes that may call for careful adjustments.
Retirement security depends on discipline, not reaction. Advisors agree the best move is to mute the noise, build a plan, and revisit it only when major policy or financial changes truly warrant attention. As Feig puts it, the goal is to “put on your financial blinders” and stay focused on the road ahead.
