Market Volatility

Market volatility can destroy your retirement dreams if not understood and protected against.
Most brokerage firms who sell stocks and encourage buying in to the market generally like to talk up the average rate of return. While it is true that over a longer period of time market averages out and performs reasonably but if you are getting close to retirement then the average rate of return may not work for you. What is important however that you follow a tried-and-true strategy to counter a bad sequence of returns. Especially if you get caught in the economic meltdown like that of 2001 or 2008 where almost fifty percent of the market value disappeared in a flash.