Even though the stock market continues on is downward spiral you still stick to your retirement plan.

During the past year it is estimated that pensions and 401k's have lost over 2 triliion dollars.  Take alot of money lost but try not to panic. For those that are 60 and over it is still suggested that you have 10% in cash, 40% in bonds and 50% in stocks. If you are going to need some cash within the 5 years you should take that portion out of stocks. AT this age you really can not afford to take many risks, if at all so stick to cash and bonds for that short term capital. Try not to spend most of your 401k's in the first year, let it accumulate some interest for you.

Looks at some of your other investments firstly before cashing in on your 401k's. Just because you're retiring in a year or two doesn't necessarily mean you'll need the money from your 401(k) right away. You may have a pension, maybe you'll be receiving social security, or maybe you plan to downsize your home and live on the sale proceeds for awhile.

Need a bit of extra cash, you can also enter contests. I found a new one at http://clearblogs.com/foundmoney