After the recent stock market volatility, some advisors said investors should take a deep breath.

Or as one pundit said, “Don’t worry about market jitters, just get a hobby.”

stock market volatilityOn the other hand, I think it’s the absolute right time to reconsider the standard advice you get when the market takes back all of the “gains” you were counting on.

Let’s get back to basics: If you’re a Baby Boomer or just considering retiring in the next five years, why do you have investments in the first place?

  • To generate cash flow to live on when you’re retired?
  • To have a resource to draw on in case of unexpected costs?
  • To leave a legacy for your family or favorite charity?

For each of these objectives, how should your plan respond to market “corrections”?

Cash Flow

Have most of your cash flow coming from safe income, so you needn’t take steps to cut your losses when markets tumble.

Unexpected Needs

Make sure a portion of your investments are in short-term fixed-income funds, which will be little affected by market jitters.


Adopt the philosophy that the beneficiaries of your legacy can take the long view. That allows you, and them, to ride out the market.

I believe what’s needed is neither a deep breath nor a new hobby — but a new retirement income plan. One that is less dependent on the market, generates more income to live on, creates emergency funds and leaves a legacy.

One silver lining is that as interest rates increase, causing some of the market downturn, the guaranteed lifetime income you can purchase through income annuities has improved. We suggest you go get a free no-obligation quote at Go2Income.  Once you get your first quote, we’ll automatically update it for you on a regular basis.

Are you ready to talk about how to create safe, guaranteed income for your retirement? Write to me at Ask Jerry and I will answer you personally.