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Billjam,

A recent InvestorsInsight article, "Retirement Focus - What Now???", by Mike Posey, addresses your dilemma under the section, Avoiding Costly Bear Market Mistakes.

Many retirees now fear that their nest eggs may not carry them through retirement after having been devastated by the recent stock market decline...To help any readers who may be in that situation, I offer the following advice on ways to avoid making costly investment mistakes in retirement:

1. Keep retirement distributions realistic.
Many experts suggest a more reasonable withdrawal rate of 4% to 6% per year is most appropriate. If that was true before the recent market meltdown, it may be necessary to withdraw even less than 4-6%, especially for retirement portfolios that may have suffered significant losses. Increasing the withdrawal rate on a portfolio of assets that has declined in value only makes the problem worse, and hastens the day when the portfolio can no longer provide a sufficient income stream. Seek out other ways to supplement income rather than by increasing your withdrawal rate to a level that may be unsustainable.

2. Be careful when liquidating assets.
If you have an equity portfolio that has suffered major losses, you may want to resist the temptation to cash out now.
As these selling pressures diminish over time,it's possible that equity prices will eventually rebound. And while they may not get back to their original October 2007 values, they may pare losses enough to make it worthwhile to have waited to liquidate.

3. Don't try to "make it all back" in risky investments.


Here's the link:
http://www.investorsinsight.com/blogs/forecasts_trends/archi...

Ray
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