People purchase protection for their Cars, Home, Jewelery, Boats, or Motorcycles. etc. When the unexpected happens, this protection can come in and make things "whole" again. In my experience working in Financial Services/Insurance, I have seen so many cases where people had more than enough protection that carried them through the "storm". Not once during the claims process did they complain about "paying to much" for their protection. Most people are not worried about that if their house has burned down. Your house is important "asset"(I use that word asset loosely)would you ever think about not insuring it? Of course not!!
So why do many people have zero protection for their retirement savings? What form of protection do most have against downside losses? Many experts and advisors believe in Dollar cost averaging or a Buy and hold strategy. These are fine, but you must plan for the worst! For example, if I employed a buy and hold(dollar cost)strategy for Pan Am stock from the 1970s, how much stock would I have today, and how much would it be worth today? I would have plenty of shares of stock that are worth nothing!
In my opinion, you must have liquidity when those market corrections take place. This just means you must have fast access to cash. The problem with most people is that their 401k is liquid, but the value of the liquidity or shares is subject to the volatile mood swings of the market. This means your money is not protected, and may not be there when you really need it.
The other main concern is after 59 1/2, how far will this retirement money last? With the tax changes on the horizon, this will have a huge impact on how long these monies will last. Changes in the health care legislation, looming inflation, Government spending all play a factor in how long your money will last.
In short, you must think about making sure your retirement savings are protected against loss. Having your car and home insured make sense, so why not your hard earned cash??