Op-Ed: Since you can't beat the market, the key is to only take the risk you can handle

You may get lucky on when to sell, but when do you get back in? After the 2008 downturn, many missed years of earnings when the tide turned in 2009.

First, figure out how much money you require for your expenses and create a financial plan to understand what is needed for financial independence. This involves breaking down your "needs" – the cost of housing, food, transportation, and health care — and your "wants," such as toys, entertainment, unnecessary clothing and any other expenditure not needed to live.

No one knows what the future holds, but by living life fully and reducing complexity, we can more easily face the upheavals that occur.Next, create an "investment policy" you will stick with no matter what the stock market is doing. This determines what percent of your money will be allocated to risky investments, such as stocks, and to conservative investments such as bonds. An allocation of at least 50% bonds is often more appropriate for those starting retirement.

Third, put in the building blocks to create resiliency for whatever life throws your way. Carry the appropriate disability and life insurance. Prepare your estate plan so your family can take over if you become incapacitated or have an untimely death. Take care of your health to reduce potential medical expenses and to live a better life in general.

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