With the continuing demise of stocks, exchange traded funds (ETFs) and other securities, many baby boomers are losing sleep over their retirement portfolios, and for good reason.

The stock market is at 12-year lows, the real estate market is at six-year lows, unemployment rates are skyrocketing, corporate profits are diminishing and the decline in American wealth is the greatest on record. 

In fact, the two biggest parts of the retirement asset puzzle is real estate, the house that we live in, and retirement portfolios, whether they be a 401(k), 403(b), pension plan or an IRA.  With both of these contributors being hammered and the daily, weekly and monthly reminders of just how bad the stock market is, baby boomer confidence has diminished. 

To add fuel to the fire, the government may actually be hurting, and not helping, the situation, states the Associated Press. President Barack Obama’s tax plan includes hiking up the tax rate on capital gains and dividends from 15% to 20%, which sent a negative message to Wall Street, increased uncertainty in an already uncertain world and made it even less appealing to invest in a dividend paying company or an index that shoots off capital gains.

The million-dollar question is, what to do with an existing portfolio? Well, here are some suggestions:

It is important to remember that one day this will all be behind us.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.