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How Gen Z investors can cope with stock market volatility

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4 months ago

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Amid the U.S. war with Iran, some young investors have gotten their first taste of market volatility.

“An early decline can make the market feel unusually dangerous when volatility is a normal part of long-term investing,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City.

“It can be unsettling because they don’t yet have the experience of living through prior downturns and recoveries,” Boneparth said.

Since the war in the Middle East began on Feb. 28, the S&P 500 has seen daily drops of more than 1.7% and daily gains higher than 2.5%, according to data from Morningstar Direct. Stocks have fared slightly better since the U.S announced a two-week ceasefire on April 7.

Still, within the first month of the war, the S&P 500 shed more than 7%. An initial investment of $10,000 investment in the index on Feb. 28 would have dropped to around $9,260 by March 29, Morningstar Direct calculated.

The S&P 500 has now wiped out its losses from the Iran war, pushing that investment to $10,026 as of Monday’s close.

Those market swings may have an outsized impact on new investors, said Zach Teutsch, founder and managing partner at Values Added Financial, a wealth management firm in Washington, D.C.

“Our first experiences weigh heavily on us emotionally and in how we see the world,” said Teutsch, a member of CNBC’s Financial Advisor Council. “It’s hard not to overlearn our first few lessons.”

Gen Z, those born between 1997 and 2012, started saving and investing at 19 on average, according to a 2024 Charles Schwab report. To compare, baby boomers began investing at an average age of 35.

Expect 15 bear markets in your working years

The latest volatility is nothing unusual, though.

Indeed, young people can expect around 15 bear markets during their working years, said Cristina Guglielmetti, a CFP and the president of Future Perfect Planning, a wealth management firm in Brooklyn, New York. A bear market occurs when an index declines 20% or more.

In recent weeks, the Nasdaq and Russell 2000 entered correction territory — a decline of at least 10% — while the S&P 500 came close. All have since rebounded.

“Clients sometimes ask me if the market will crash, and I tell them that it’s not a question of if, but when,” Guglielmetti said.

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These inevitable market downturns actually provide disciplined young investors with the opportunity to buy stocks at a discount, said Boneparth, who is also a member of CNBC’s Financial Advisor Council.

“Time is typically their greatest asset, and over a long investing horizon they should expect to live through many corrections, bear markets, recessions and geopolitical shocks,” he said.

The best strategy is ‘one you can stick with’

Recent market swings may have taught you about yourself as an investor, Guglielmetti said.

“Nothing beats experience,” she said. “You can know, intellectually, that the market is volatile, but until you actually see your numbers go down, you don’t really know how you’ll react.”

If you were overly anxious about your investments during the last few weeks, “maybe a 100% stock portfolio isn’t right for you, even if you’re very young,” Guglielmetti said. You may want to keep a share of your money in cash, bonds, certificates of deposit or money market funds.

The best investment strategy is “one you can stick with over time,” she added, “not necessarily the one that gives you the highest returns if you can’t stay in the market.”

To be sure, you don’t want to invest too conservatively, and risk falling short of your financial goals, or yank money out of the market during downturns and miss the market recovery.

Strategy may also need to change for near-term goals

Most people in their 20s and 30s who are investing for retirement want to keep the lion’s share of their money in stocks, Boneparth said. However, “where strategy may need to change is around near-term goals,” he said.

Money you expect to use within the next few years for, say, a home purchase or graduate school, should not be invested as aggressively, Boneparth said. A high-yield savings account can be a smart option for short-term money, while funds for medium-term goals might be in a mix of cash and other conservative investments.

“Young investors can invest for multiple goals at once, but they should avoid treating all dollars the same,” Boneparth said.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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1 day ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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3 days ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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1 week ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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