I spend a lot of time helping people understand how much money they will need to meet their retirement goals. I have found that many people thinking about retirement are making simple calculations that can lead to disastrous decisions. For example, I have come across countless people who simply add up their social security and pension payments, assume a high rate of return on their investments, and apply a best-guess tax rate to all of that income. They then compare that to their expected expenses in retirement.

Even with dividend yields falling over the past few years as the stock market continued to rise, the growth of dividends over that time frame has more than offset the declining yield.

The carnage in the energy industry continues as oil has dropped below $40 per barrel, a level not seen since 2009. The biggest name of the bunch, Exxon (XOM), has not been unaffected either. Exxon's stock price is down 25% from the peak seen in mid-2014.

Many of us remember the days when being a millionaire meant you had made the big time. The same was true when retiring with $1 million in the bank. But compounding inflation and low interest rates have turned that idea on its head.

With the most recent stock market downturn and much-increased volatility, many investors are fretting and rubbing their hands together with anxiety. But income-oriented investors might want to instead celebrate, especially if they have cash they can begin moving into solid companies that now sport a higher dividend yield.