Some people are panicking because they've heard experts say money needed in the next five years shouldn't be in the market. These people want to cash out completely.

That's the wrong approach. You're not going to need all your money the day you retire. "You have to stick with your long-term asset allocation," advised Christine Fahlund, senior financial planner at T. Rowe Price.

If you're still nervous, reduce your 401(k) contributions and save the equivalent of a few years' worth of expenses, said Bill Losey, author of Retire in a Weekend: The Baby Boomer's Guide to Making Work Optional.

Watch how to make your money last your entire life. Watch

Calculate how much you need to retire.

Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.


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