By: Garrett Zimmermann
If you’ve been watching the headlines lately, one thing is clear: uncertainty continues to dominate the economic landscape. Interest rates remain elevated, inflation is declining but persistent, and market volatility is a regular occurrence. These conditions can make investors feel anxious and lead them to wonder whether now is the right time to invest—or if they should wait it out.
The impulse to time the market is understandable. But in reality, trying to predict short-term market movements often does more harm than good. Especially now, in a period of heightened uncertainty, having a well-constructed financial plan is far more effective than trying to guess what the market will do next.
The Problem with Timing the Market
Market timing requires two correct decisions: when to get out and when to get back in. Most investors focus on the first—and ignore how difficult the second can be. The cost of being wrong can be significant.
Consider this example: If an investor remained fully invested in the S&P 500 from 2003 to 2023, they would have seen their money more than quadruple. But if that investor missed just the 10 best days in the market over those 20 years, their returns would have been cut nearly in half. Missing 30 of the best days could have eliminated their gains entirely.
The challenge is that the best days often come immediately after the worst ones. Investors who exit the market in response to volatility often miss the recovery.
This chart illustrates how missing the best days in the market from 2003 to 2023 can dramatically impact the outcome of a $10,000 investment:
· Fully Invested: $10,000 grows to about $42,000.
· Missed 10 Best Days: $10,000 Grows to only $21,000.
· Missed 30 Best Days: Gains are nearly wiped out, ending at $10,000.
Planning Provides Stability and Structure
Unlike market timing, which is reactive, financial planning is proactive. A solid plan is built around your goals, time horizon, and risk tolerance—not market headlines. This foundation allows you to make decisions based on strategy, not emotion.
A well-designed financial plan helps you:
Stay invested in a diversified portfolio that aligns with your objectives
Prepare for volatility through proper cash reserves and asset allocation
Reduce taxes through strategies like tax-loss harvesting or Roth conversions
Make confident decisions during periods of uncertainty
Good planning does not eliminate risk, but it gives you a framework to manage it effectively.
Flexibility is More Important Than Predictions
Markets will always fluctuate. Economic conditions will shift. Rather than trying to predict every turn, it’s more effective to have a plan that is built to adapt.
A strong financial plan accounts for:
Changing interest rate environments and their impact on debt and savings
Temporary market downturns, with strategies in place for recovery
Life transitions that affect your goals, income, or retirement timeline
The ability to adjust your course while staying focused on your long-term destination is one of the most important benefits of financial planning.
The Bottom Line
Trying to outsmart the market by guessing its next move is rarely successful and often harmful. The most successful investors are not those with perfect timing—they are the ones with patience, discipline, and a plan that aligns with their long-term goals.
If the current economic environment has you second-guessing your investment decisions, now is a good time to revisit your financial plan. Let’s make sure it still reflects your priorities and can weather whatever the market brings next.
This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. This material is not intended as any form of substitute for individualized investment advice and social security planning. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. The materials we forward contain information researched and curated by the writer. Where reasonably available, we have attempted to verify such data through independent sources. In some instances, no direct verification is available, but our overall view of the writer, the organization with which they work, or the subject matter have led us to conclude that the information is materially reliable, or at least sufficiently insightful as to provide a starting point for a reader to thoughtfully consider the material. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training. 1323GST
