When depending on your retirement portfolio for retirement income, the ups and downs of the stock market can cause a person to lose sleep. Understanding the variations over time and planning for market volatility will help alleviate fear and anxiety. No investment is a perfect investment. All have risk, but you may have to tolerate more risk if you are relying on your portfolio to produce income to primarily support your retirement. Having accessible cash, like a savings account or an emergency fund, is an effective strategy for smoothing out market volatility and compensating for fluctuations in retirement income.
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