What To Do With Your Money During Uncertain Times: How to Minimize Risk and Generate Income in 2026

There’s no doubt that we’re living in unpredictable economic times.

Inflation and high interest rates are already making life more expensive, and many are concerned about what the future holds.

From political tensions to tariffs to market whiplash, uncertainty is the defining quality of our times.

If you have investments, especially in the stock market, you might be asking questions like:

“Is my retirement safe?”
“Should I pull my money out of the market?”
“What will tariffs mean for me?”
"How do I protect myself in times of volatility?”

Here’s the good news: This isn’t the first time we’ve experienced uncertainty in the market.

And times of volatility also represent great opportunity, if you know how to control your risk and leverage your finances to protect your assets and even generate income.

Know Your Number, Know Your Risk

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When you're young, investing can feel like playing the slots: You put money in, you lose money, you make money, you hope to eventually come out on top (and over time, most people do).

But when you're retired or nearing retirement, your investments represent real-world dollars that directly impact your qualoty of life.

It's not just about maximizing returns, but making sure you have enough money each month–and for the long haul.

Before buying stock or moving money, we recommend starting with the most basic of financial tools: a budget.

Set a realistic goal for how much money you'd like to have each month to cover your needs and lifestyle.

Then look at all of your income sources outside of your portfolio (social security, real estate, pensions, etc.).

From there, a wealth manager like the team at Sizemore Capital can help you adjust your budget for inflation and determine how much you actually need to meet your monthly goal–and how much of that needs to come from your investments.

This can give you perspective on how at risk you truly are. While no one wants to lose money, if you have more than you need to live on, you can tolerate more risk than someone who doesn't.

The #1 Key to Risk Management: Diversification

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Before we talk about what to buy to minimize risk in 2026, let's talk about how to invest.

The #1 key to mitigating risk in your portfolio is diversification.

Many people think they have a diversified portfolio because they have a mix of stocks, funds, or EFTs–but that's not true diversification if they are all affected by the same market trends and move together.

A better way to think about diversification is, "What do you not own currently?"

For example, if you have an IRA made up of mutual funds, it might be time to think about real estate, gold, active strategies, or even alternative investments like cryptocurrencies.

A truly diversified portfolio is one where each of your investments is independent from each other–meaning one area can take a hit while the others remain strong.

As the old adage goes, don't put all of your eggs in one basket. But which baskets should you prioritize in today's market?

What To Buy In 2026

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It's been quite a ride in the stock market over the past few years.

Since 2019, the S&P 500 index, a common benchmark for the stock market, has risen at a compound annual rate of about 15%, which is about 50% higher than the long-term average. The returns in tech stocks have been even higher, with the "Magnificent 7" of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla collectively up hundreds of percent.

There's nothing wrong with having a healthy allocation to growth stocks. They should be a core piece of your portfolio.

But they shouldn't be the only thing in your portfolio because even fantastic growth stocks can see their share prices slashed in a bear market.

Following the last major bull market in tech stocks–the 1990s tech bubble–the Nasdaq went through a brutal bear market, losing 78% of its value. It took nearly 15 years for it to recoup those losses. Had you been planning to retire in 2000 with an aggressive growth stock portfolio as your only asset, you would have been in for a rude awakening.

Yet while growth stocks really suffered in that stretch, many dividend and value stocks performed well.

We coule be looking at a similar shift soon.

With chaos comes opportunity. For example:

•  Friction between the United States and Europe hs prompted European countries to take their national defense more seriously... and led to excellent returns in the shares of European arms manufacturers.

•  The trade tensions between the U.S. and China created a boom in American rare earth mineral stocks.

Keeping an open mind and diversifying into opportunities that are a little off the beaten path in 2026 will allow you to potentially lower your risk while improving your returns.

Income-Generating Strategies to Offset Risk

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Traditional investments like 401(k)s and IRAs are designed to be withdrawn from: you have a lump sum, and you take money out of your account to live on.

In a perfect world, the account grows through capital gains, interest, and dividends, but you're always vulverable to running out of money if you spend too quickly or the market tanks.

That's why at Sizemore Capital, we also prioritize income-generating strategies that continuously produce cash flow, giving you a "paycheck" of sorts in retirement and creating less dependence on an ever-risking market to cover your living expenses.

One of my favorites is covered call writing.

Imagine you own a stock you like–say, 100 shares of a solid, stable company. You're happy to hold it, but it's just sitting there, not doing much. You wish it could generate a little extra income while you wait.

That's where covered call writing comes in.

You decide to sell a call option on your stock–essentially giving someone else the right (but not the obligation) to buy it from you at a set price (the strike price) within a certain time.

In exchange, you collect a premium upfront, like rental income on your stock.

If the stock stays below the strike price, the option expires worthless, and you keep both your stock and the premium. If the stock rises above the strike, you might have to sell it–but at a price you were already happy with.

It's a way to earn extra income from stocks you already own, especially in times when the stock market isn't moving aggressively highter.

Let's Build a Recession-Proof Portfolio Together

At Sizemore Capital, we believe everyone deserves a rock-solid portfolio that provides them with a confidence in their financial future.

While having a budget and strategy is the first step, choosing which products to buy, knowing how much to invest in each, and understanding which real-time moves to make is better done with a guide.

When you partner with Sizemore, our fiduciaries act as a member of your team, offering full-service wealth management to help you find the perfect mix of investments to reach your unique financial goals.

We can help you protect yourself against a stock market crash, ensure you have enough money for retirement, and build a plan to make sure you don't exhaust your portfolio too early.