Staying Calm in December Markets: A Bulldog’s Guide to Balance

December is one of my favorite times of the year — warm blankets, glowing lights, and long, cozy naps by the fireplace. But for many retirees, December market swings bring more tension than comfort. With headlines swirling, analysts predicting every possible outcome, and portfolios shifting as institutions rebalance, it can feel like the financial world is wobbling right when you want a peaceful end to the year.

The truth is, December comes with its own brand of market noise. Some years bring holiday optimism, some bring fear-driven selling, and some bring a mix of both. But regardless of the mood, retirees don’t have to feel tossed around. With the right mindset and structure in place, you can stay calm, steady, and confident — even when markets aren’t.

Here are a few simple, practical ways to stay centered as the year wraps up and the market does its usual December dance. 

1. Keep Long-Term Perspective — Not Play-by-Play Panic

December often brings more volatility simply because there’s more activity: portfolio rebalancing, tax-loss harvesting, and end-of-year financial decisions by individuals and institutions. These moves can cause short bursts of movement that feel alarming when viewed day-to-day.

But your retirement is not a day-to-day project — it’s a long-term plan. Short-term swings shouldn’t disrupt a long-term retirement income planning strategy. When retirees react emotionally to every dip, it can trigger decisions that undermine years of careful planning. That’s why staying committed to your bigger picture, instead of the minute-by-minute market updates, is one of the most powerful ways to protect peace of mind.

The market may wobble in December, but your long-term plan shouldn’t.

2. Review Your Risk Exposure Before Markets Get Loud

Just as I don’t chase tennis balls uphill (my knees said absolutely not), retirees shouldn’t take unnecessary market risks. And December is a perfect time to revisit your risk exposure.

Ask yourself:

• Are your withdrawals protected even in a down year?
• Does your exposure match your comfort level today, not five years ago?
• Can your plan support you through volatility without forcing you to sell at the wrong time?

When your strategy reflects your actual lifestyle, risk tolerance, and income needs, the emotional pressure of market swings becomes far easier to manage. A risk-balanced approach doesn’t eliminate volatility — but it prevents volatility from overwhelming you.

3. Consider Guaranteed Income Streams for Stability

Retirees with guaranteed retirement income tend to feel more at ease during volatile periods because their essential expenses are backed by predictable, non-market-based income. This creates a psychological buffer as well as a financial one.

It’s the financial version of my favorite weighted blanket — steady, comforting, and always there when you need it. When your core needs are covered by stable income sources, market noise becomes less frightening. You can weather ups, downs, and headlines knowing your foundation is secure.

This doesn’t mean eliminating growth assets altogether — it means pairing growth with stability so no single market move determines your comfort.

4. Rebalance Before Year-End (But Don’t React Emotionally)

December is a natural time to examine your allocations. Over the course of a year, market performance may have shifted your portfolio more aggressively into one area than you intended. That’s why rebalancing exists — it realigns your portfolio with your actual goals.

But here’s the key: rebalancing should come from strategy, not stress.
Emotionally driven rebalancing — or worse, selling out of fear — can disrupt long-term plans and lock in losses unnecessarily.

A calm, intentional rebalance ensures your investments continue working in line with your objectives heading into the new year.

5. Don’t Overlook Health Care and Medicare Decisions

Volatility isn’t only financial. Rising medical costs, medication changes, insurance adjustments, and Medicare timelines all play a major role in retirement security.

A resilient retirement plan looks at market risk and health care risk together, because a gap in either one can weaken the whole structure. Reviewing prescriptions, evaluating coverage needs, and checking for changes in out-of-pocket costs can prevent unpleasant surprises in the year ahead.

When your health care plan and financial plan work together, everything feels steadier — even when the market is restless.

6. Heading Into 2026: Focus on What You Can Control

If there’s one universal truth, it’s this:
You can’t control the markets — or squirrels — but you can control your structure.

Confidence grows when you have:

• predictable, reliable income
• reduced exposure to unnecessary risks
• tax-efficient strategies that support long-term goals
• and a trusted professional guiding your retirement journey

A balanced plan isn’t just financially smart — it’s emotionally grounding. As 2026 approaches, centering your focus on what you can control will help you stay confident no matter what the market does next.

Tootsie’s Takeaway

Even in bumpy markets, a balanced plan keeps you steady. Take a breath, trust your strategy, and let the holiday season stay peaceful.

Want to Learn More?

If a steady, confidence-building retirement plan is the goal heading into 2026, visit SafeMoney.com to connect with an independent financial professional in your area.

Disclaimer: This article is for educational purposes only and is not intended as financial, tax, or legal advice. Consult with a qualified, licensed financial professional before making any decisions regarding your retirement planning.