How Do You Plan to Ride Out the Slowdown?

I hesitate to use the "R" word. But it's easy to lose sleep if your nest egg is wrapped up in the stock market at a time when every politician and poll says the economy is ailing. Although most financial advisers won't recommend this (because selling low is not a good idea), I often think of putting my savings in something nice and conservative—even an FDIC-insured account—just in case, until things get better. (It breaks my heart to look at downward trend lines on financial statements.)

Many baby boomers are making changes to their retirement plans. A recent Longevity Alliance and Harris Interactive survey found that 39 percent of baby boomers with retirement savings have changed or plan to alter their retirement allocations as a direct result of current economic conditions. Their changes include seeking the counsel of a financial adviser (43 percent), moving funds from stocks to more conservative investments (31 percent), investing in value-priced stocks (20 percent), buying long-term-care insurance (13 percent), and purchasing an annuity (12 percent). If you have a winning strategy for riding out the downturn, please tell us about it below.

But whatever you do, don't invest your entire nest egg in one company—even if it's the one you work for. Avoid the fate of Bear Stearns and Enron employees by diversifying retirement funds outside the company.