To say that Americans have been spooked by the gloom and doom of economic reports is putting it lightly. The fact is most of us have at some point in our lives made a rash decision out of fear that we later regretted and many of us have put off critical financial decisions for fear of making the wrong choice.

In uncertain times, it’s easy to subconsciously make decisions based on fear instead of fact. We have to take emotion out of the equation, or we risk making financial decisions that actually hurt us in the long run.

Emotions may run particularly high for retirees who have seen a big drop in the value of their lifetime assets. But even younger consumers who are still years away from retirement may be tempted to take drastic measures that could put them in jeopardy down the road.

What’s the most logical way to keep your financial picture intact in a trying economy? One option is to start small, advises Joe Morrin, CFP® and director of financial planning at First Command.

“If you feel a need to move your money out of the market, consider withdrawing only what you need to cover your living expenses for the coming year,” he says. “Leave the rest of your investments alone.”

Historically, after the market has experienced dramatic declines, it has eventually recovered and gone on to reach new highs. Often the initial period of recovery is as steep as the worst part of the decline. Consider some of the notable short-term declines of the S&P 500 in recent history, along with the immediate recovery periods that followed (see accompanying chart). While past performance cannot guarantee future results and no one can be certain when and if the market will rebound, history can provide some perspective.

Planning to retire in the next 10 years? Now may be the time to start shifting from asset accumulation to preparing your assets to generate retirement income. Generally, as you move closer to retirement, you will want to consider more conservative investment options.

“Start preparing now with annual reviews of your risk tolerance and asset allocation, ensuring that both are in line so you can confidently and successfully transition into retirement,” Morrin says.

Remember to take into account that since a typical retirement could last decades, retirees also need to consider the long term. Assets you’ll need in the first few years of your retirement should be liquid. However, depending on your circumstances, it may be prudent for the rest of your investments to remain in the market.

“Your retirement is long term so you should consider long-term investments,” Morrin says.

If you’re in your 20s or 30s, you will likely go through several more market cycles before you’re ready to retire. “The market doesn’t always go up,” Morrin says. “That’s a valuable lesson to burn into your psyche. Understanding that bear markets have historically been temporary will help you to stay invested today and in future downturns.”

One way to avoid worrying about the specific timing of your purchases is to dollar cost average by investing a fixed sum of money periodically – every week, month, or quarter. When stock prices are high, you purchase fewer shares at those levels. When prices are low, you buy more shares at relatively attractive prices. Of course, dollar cost averaging, like any investment strategy, does not assure that you will not lose money.

Sometimes even knowing the facts isn’t enough when we are so emotionally close to a decision. That’s where a financial professional can help. Your First Command Financial Advisor can assess all the moving parts of your retirement plan from an objective standpoint, offering advice based on experience and training instead of fear and emotion.

Even in a difficult economy, people with a financial plan through a financial advisor report greater confidence in their ability to retire comfortably, greater financial security on a day-to-day basis and they report feeling less financially stretched. Households with a financial plan have greater comfort with their levels of savings and personal debt.  Now, more than ever, consumers can benefit from the support of an educated and trusted advisor who can help them replace fear with fact and emotion with logic as they navigate their financial futures.

A financial plan, by itself, cannot assure that retirement or other financial goals will be met. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP (with flame logo) ® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

First Command Financial Planning, Inc. (Member SIPC, FINRA).