We’ve been receiving a lot of questions lately about how to best protect your retirement savings against stock market volatility. It’s easy to let recent fluctuations in the market shake your confidence, but safeguarding your money in uncertain times all comes down to managing risk.

Join Nicholas J. Colantuono, CFP® in this week’s Money Wisdom Question Series as he discusses different approaches to keeping your money secure in retirement.

Prioritize Safety and Security

For the most part, the money that you’ve saved for retirement is all the money you’ll have in retirement. While it’s important to focus on growth to keep pace with inflation, you also need to ensure that your money lasts the rest of your life. This is where safety and security often form the foundation of your financial plan.

Keep Some Money in Cash

There are several safe and secure financial vehicles available; you just need to find the right ones for you. The most common of these is cash, whether in your retirement accounts or in the bank. While cash offers the comfort of stability, one of its biggest drawbacks is that it often fails to keep pace with inflation.

That’s not to say cash is a bad option right now, especially if the market is down. It’s a common way to achieve a level of safety while maintaining liquidity and earning a modest return, typically in the 4% to 5% range. However, cash isn’t your only option.

Explore Other Financial Vehicles

Other vehicles, such as CDs (certificates of deposit), offer a fixed interest rate. If you want to commit your money for a longer period, certain types of insurance products, like fixed annuities, are also an option. The difference is instead of working with a bank, your money is held by an insurance company. In exchange for that time commitment, insurance companies often offer higher rates of return.

If you’re willing to commit for an even longer period in exchange for potentially greater returns, you may consider fixed indexed annuities. While your rate of return isn’t guaranteed each year, these annuities come with no risk, no fees, and your principal is protected. Typically, you can earn up to 10% to 10.5% per year.

At the end of the day, safety is key in retirement, regardless of how the market is performing. Whether you’re working with a financial professional or making these decisions on your own, the ultimate goal is to ensure your money lasts as long as you do.