3 of 3
David and Judy McMickens, Gardendale, Ala.
Rescue Strategy: Delay Tapping the Nest Egg
Ages; 72 and 64

In 2000, a year after David McMickens retired from his 40-year job as a State Farm supervisor, he and his wife Judy lost half of their $500,000 portfolio when the tech bubble burst. It's not hard to see how: At the time, they had 90% of their savings in stocks -- a risky allocation for their age and retirement status.

But the McMickens didn't panic. Between their Social Security benefits, pensions and ample cash in the bank, they simply delayed tapping their nest egg, giving it time to bounce back. By 2005 it had, and they began working with financial planner Stephen Iaconis to create a more balanced portfolio, now 60% in stocks and 40% in bonds. Though they've lost 24% in the past year, their experience taught them not to worry; once again, they're relying on pensions and Social Security ($80,000 a year), plus a cash cushion ($75,000), to help them postpone tapping savings. Says David: "We can just sit tight and wait for our nest egg to grow again." --Ismat Sarah Mangla

More galleries
Last updated March 09 2009: 10:12 AM ET
More Galleries
8 great summer vacation deals Want the perfect summer getaway? MONEY searched for destinations with balmy weather, unique attractions, fun stuff to do, and great deals from four different categories: beach, mountain, culture and city. More
Best ways to catch up on your retirement savings Even the most financially responsible people make a few mistakes or run into obstacles along the way. These tips -- from cutting taxes to selling securities -- can preserve a safe retirement. More
Nearing retirement? Fortify your finances Your financial goals are within reach. Here are tips and tools to make sure you achieve them. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.