I Lost Over $100,000 In 2 Weeks! What Do I Do Now?
I Lost Over $100,000 In 2 Weeks! What Do I Do Now?
by T. Claire Kest, CFP®, CAP®
On January 28, 2026, the S&P 500 opened at 7,002, and has steadily declined since then, dropping nearly 500 points over the past two months. By Friday, March 20, the index closed at 6,506. Last week, "Winston" called to ask for help from a new financial advisor, saying "I've lost over $100,000 in two weeks!" The distress in his voice conveyed his fear that the stock market would continue to decline. "I think we can help," the advisor reassured him and scheduled an appointment with the Hurlow Wealth Management Group to talk further. When your future hopes depend on the performance of your investment portfolio, it is natural to feel distressed when you are the one in charge of managing your portfolio. At those times, working with a professional is better than navigating on your own.
Winston had planned to retire in six years and wonders if that is still possible. He has lost sleep wondering if he should get out of the stock market entirely. However, if he did capitulate, he doesn't know which investments to choose instead, or whether just to let the money sit in cash until the market rebounds. He also remembered what happened in 2025, and the market recovered a week after he felt this way. Winston, an educated man in his mid-fifties, ultimately fears making a mistake. His wife depends on him to make the right financial decisions. He knows he needs help and a solid plan to navigate the challenging market conditions.
Since he was 25, Winston has been steadily investing in the stock market, taking short breaks when he bought his first house and again when his wife stopped working to stay home with their children. For the past 14 years, he has been at the same Indiana-based company and plans to finish his career there. He has earned shares of company stock and wonders if he should hold on to them for now or sell them, and has questions about the tax implications of either decision.
Winston's current 401(k) is approximately $650,000 and diversified in a 2035 target-date fund. However, his old retirement plans from two previous jobs, his Roth IRA, and his E*TRADE investment account, totaling almost $1.5 million, are all invested in U.S. stocks or S&P 500 index funds.
To alleviate Winston's fears, his new financial advisor helps him get organized through a simple but effective process.
- First, the advisor engaged Winston in a discussion about expenses, risk, return, and goals, and then made a recommendation for an appropriate asset allocation.
- Second, the advisor explained the "Hurlow Rules" around trading. When an asset class veers too far from the asset allocation, the team makes necessary trades to bring the portfolio back in line. The simple evidence-based formula is below:
- Allow each asset class to deviate 20% from its target allocation before rebalancing.
- Only rebalance when it is necessary to avoid excess trades, costs, and taxes.
- Monitor portfolios weekly to look for rebalancing opportunities.
- Third, they moved all the assets except his current 401(k) to a single custodian to make coordinating trading and rebalancing easier.
- Fourth, they would meet at least once a year to reassess Winston's progress toward his savings goals and determine whether to make any adjustments to the plan.
- Fifth, they identified other gaps in their financial plan, including an outdated estate plan and insufficient car insurance liability coverage. They set up a separate appointment to discuss these next steps.
After meeting with the advisors and understanding the philosophy, Winston felt immense relief, knowing he was no longer carrying the responsibility for his retirement alone. He had hired not only one, but a team of financial advisors to help him and his wife navigate the next few years.
Don't Go Alone
If you feel financial anxiety before retirement, you're not alone. Seek professional guidance when needed. For over two decades, our fiduciary financial advisors have helped Midwest Millionaires find clarity, make decisions with confidence, and achieve comfort in retirement. Schedule an introductory call today to assess your financial situation, set goals, and create a comprehensive financial plan. By managing stress and seeking expert guidance, future retirees can achieve financial security and enjoy a worry-free retirement.