Already retired

This volatile market is probably not what you planned on when you retired. But focusing on what you can control is the best way to find calm in the market's storm. Step back, assess where you are, and determine if you need to make any adjustments to help protect your retirement security.

Protect yourself against an unpredictable market

It's a good idea to create a buffer against market risk by allocating a percentage of your portfolio to cash or short-term assets that are not affected by market volatility. Typically, you should have enough short-term assets to meet your income needs for three to four years. The rest can be invested in a mix of stocks and bonds for longer-term growth.

Manage your withdrawals

The most important aspect of retirement security that you can control is the amount of money you withdraw each year. In general, the higher the withdrawal rate, the greater the chance that your money won't last through retirement — especially if the market is declining.

Address other key risks

While volatility may be the most pressing issue right now, it's not the only risk that can affect on your investment strategy. Keep these other risks in mind when you talk with your financial advisor:

• Inflation – Inflation will continue to rise during your retirement. Consider ways to grow your assets to outpace inflation and preserve your standard of living.
• Taxes – Tax-deferred or tax-exempt investments help your assets grow in the most tax-efficient way, and a smart withdrawal strategy can keep more money in your pocket.
• Health care – Plan for medical costs to rise faster than inflation. Out-of-pocket expenses are a significant percentage of the money you need each year in retirement, and are only getting higher.
• Unexpected events – It isn't uncommon these days to have an adult child who needs to move back home due to divorce or a job loss – or you may face unexpected medical expenses. You may need to adapt by reducing your monthly expenses or considering ways to generate income to limit how much you withdraw from your savings. The key is to be flexible.

Make sure you have a comprehensive financial plan

One of the benefits of comprehensive planning is that it helps take some uncertainty out of the picture. According to a recent national study, 74% of people with a comprehensive financial plan feel financially prepared despite volatile market conditions.¹ Learn more about the benefits of financial planning.