I think many people deal with this issue by having a glide path, meaning they have several years' worth of expenses in cash equivalents like treasuries, so they don't have to sell equities during a downturn. I also have commercial real estate that provides solid, predictable income. I've kept enough cash reserves in the real estate account to cover vacancies and repairs. So to summarize, if you are worried about a market crash, the answer should include moving toward a more conservative allocation as you approach retirement.

Anonymous wrote:I think the original point was less about going out to eat in retirement, and more about illustrating the parts of a potential retirement plan that could be cut back on if needed. I know DH and I have a plan for what we want to do in retirement, but also a realistic expectation of what we might have to change if finances or health or something else changes. Build flexibility into your retirement plan to account for different scenarios.

Same here. I know if my projected retirement income is cut in half, I still have a comfortable retirement. Just won't travel as often. People forget how easy it is to be frugal when you have no mortgage and no need to buy the latest clothes or things for the house.

I think the original point was less about going out to eat in retirement, and more about illustrating the parts of a potential retirement plan that could be cut back on if needed. I know DH and I have a plan for what we want to do in retirement, but also a realistic expectation of what we might have to change if finances or health or something else changes. Build flexibility into your retirement plan to account for different scenarios.