"it seems to dampen at a good rate" The only acceptable rate is one. It should not even jiggle after pushing down on a fender, down and up. finished.
You may want to replace your engine mount with a poly one, the next time it fails. There are various suspension bushings that dry up with age and get hard, and those could also account for your loud bumps.
New shocks and struts after 120K miles is not an unreasonable expense.
Be very careful, Volvos can become habit forming.
Klaus
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(V♂LV♂s 1975 164, 1995 854T, 1998 V70R)
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