I recommend that investors consider the Level3 Withdrawal Strategy, developed by the founder of American Association of Individual Investors. It divides a portfolio into two parts: equity and safe. The equity part is allocated to stocks. The safe part is allocated to cash and equivalents. Two to four years’ worth of planned withdrawals should be held in this second part. When stocks are within 5% of their highs, withdraw from the equity part. When stocks fall, withdraw from the safe part. Once the market rebounds, replenish the safe part from the equity side to ensure you have enough cash to protect to portfolio during the next downturn. -Charles Rotblut, a Vice President and AAII Journal editor at the American Association of Individual Investors in Chicago

Make sure you take advantage of the commonly overlooked fine-print benefits at work, including reimbursements for backup child care, gym memberships and cellphones. When you get those reimbursements, transfer them to your emergency account. -Nathan Barbakoff, Financial Adviser at Bleakley Financial Group in Fairfield, N.J.