2013 was an incredible year in the stock market and other than a few mid-year hiccups it only seemed to go up.  As we venture into 2014 we are experiencing a bit of a correction. Stock market volatility is on the rise and peoples sentiments quickly begin to change about their future when the markets begin to get wobbly.

I spoke with a friend this morning who said he and his wife were planning a river cruise through Europe. One of the reasons he chose to do this was because they are confident in their retirement plan.

Imagine a world where the stock market only went up. As nice as it sounds that is just not the way the stock market has ever worked. Time is the only cure to the stock market volatility. The more time you have, then the more risk you can afford to take.

When you create your retirement plan being conservative is advisable especially the income portion of that plan. When you take the conservative route to retirement income you do not have to worry about the volatility of the stock market disrupting your cash flow or your lifestyle.

Diversify your portfolio so that time is on your side and when the markets get wobbly and fear begins to take root you won’t have to worry. Instead you can spend your mental energy planning your next adventure on a river cruise through Europe.