# Retirement Guru: Investing During A Market Downturn

For retirees, investing in ETFs is an effective way to fund your retirement. Unfortunately, investing in the stock market is inherently unpredictable and the only thing that is certain is that there will be the occasional market downturn. Instead of panicking when the market goes down, savvy retirees will leverage these dips as opportunities to grow their dividend income portfolios.

## What is the Pyramid Strategy?

Unfortunately, as we will never be able to predict the depth or length of these dips, smart retirees will use the **Pyramid Strategy** to maximize their returns. The Pyramid Strategy is the accumulation of more shares at fixed, gradually increasing intervals as the market declines (see pic). This approach allows the retiree to: (a) reduce timing risks; (b) apply dollar cost averaging; and more importantly (c) invest more when prices are lower.

## How to Implement the Pyramid Strategy

**Set Your Budget**: Determine the total amount you plan to invest.**Divide Your Budget**: Split the total into 10 equal parts. For example, if you have $10,000, each part would be $1,000.**Structure Your Pyramid**: A common approach is to create a 4-tier pyramid:

- Tier 1: $1,000 (10% of budget)
- Tier 2: $2,000 (20% of budget)