For the five years after that, she suggests a conservative investment that offers a bit better rate of return. And so on, using more aggressive investments as the time horizon grows.

"When people don't do this, they don't really understand what their income needs are," Jessop says. "It's important that people plan for a lifetime of income."

Many people either get too conservative, making it impossible to keep up with inflation and taxes, or too aggressive, putting their money at excessive risk.

She suggests that Stephen take a step back, reassess how much money he has and what sources of income are available to him, then decide how to allocate that money to the various "pockets" of his time in retirement.

In other words, Stephen, don't just sit and hope stocks come back. Take action, starting with withdrawing less.

"He shouldn't be withdrawing more than 3 or 4 percent of his net worth on an annual basis to make sure it will last through his lifetime," Jessop says.

"If you were earning $90,000 and took a pay cut to $70,000, you would adjust your spending. People in retirement need to make the same adjustments."

She says people still have opportunities after they have retired to make adjustments and help ensure a secure future. They just need to formulate a plan and take emotion out of the equation.

"If you have a plan, then you won't let what's happening right now change your investment philosophies for the future," Jessop says.

I hope this helps, Stephen, and I hope you're able to develop a plan that sees you through your retirement years.

If you have comments or financial questions, send them to gkratz@desnews.com or to the Deseret News, P.O. Box 1257, Salt Lake City, UT 84110.

E-mail: gkratz@desnews.com