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The author discusses for older people invested in stocks, the performance of market in retirement can have effect on one's portfolio and mentions that one needs to sell shares to get the cash that one needs.

JPMorgan Chase's giant trading loss began as an effort to manage the bank's risks -- a move that turned into something that now looks more like a speculative bet. But don't think this is solely a big-bank problem. Even small investors can run into trouble discerning the fine line between hedging and risk taking. Investors can try to limit their risks by holding down their stock exposure through diversified investments. But many people are still depending on the market's engine -- perhaps more than they might think -- to maintain a comfortable lifestyle in retirement, say, or pay for their children's college educations. [ABSTRACT FROM AUTHOR]

So much of our financial lives requires regular maintenance -- whether it's updating who's going to inherit what, checking that you're not paying too much for car insurance or making sure your investments, particularly your retirements savings, are still working for you. As the markets ebb and flow, the mix of investments that you originally put into place will probably change shape over time. And if you let your portfolio roam free for too long, your long-term plan can be thrown off kilter. Your retirement savings could become too heavily invested in stocks, potentially magnifying your losses when the market takes its next dive. Or your savings could become too conservative, and that's a problem, too. [ABSTRACT FROM PUBLISHER]

Target-date funds have come under fire in recent months for failing to shelter investors, especially those near retirement, from the market maelstrom. Many of the funds -- which are supposed to have an increasingly conservative investment mix as an investor reaches a retirement date -- failed investors last year. But so did a lot of broadly diversified portfolios carefully customized by financial planners. The market collapse spared no one (except for those heavily invested in Treasuries, of course). [ABSTRACT FROM PUBLISHER]