If you are planning for retirement here are the main strategies to mitigate market volatility.

1. If you are 5 to 10 years from retirement – you still have time on your side.  You can still benefit from future stock market returns, price appreciations and dividends.  Continue saving as much as you can to build your portfolio.  Consider downsizing your home to eliminate debt or even move to a less expensive area to capitalize on the recent real estate gains.
2. Since for most, retirement will be long term – your investment focus should also be long term.  Stay invested in a diversified portfolio when you enter retirement.  Do not try and time the market or take on risky investments.  Staying invested will ensure you avoid the risk of knowing when to get back into the market if you decided to bail out when markets go down.  Ensure your advisor rebalances your portfolio on a continuous basis to maintain a strategic target asset allocation.  This will guarantee your portfolio is realigned properly to your risk tolerance, age, and future goals.
3. Most advisors will tell you to keep maximizing your IRAs and 401Ks until you retire regardless of market volatility.  Stick to your financial plan and ignore the market chatter.
4. Try and delay portfolio withdrawals for as long as possible to allow a recovery to equity prices and portfolio values if you are retiring in a down market.  Also curb major purchases in the first year of retirement.  Use your portfolio to generate income from interest and dividends rather than selling securities that have declined in value.