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If You’re Going to Retire Within the Next 10 Years, You Need to Review Your 401(k)


If you are in your fifties or sixties, chances are your 401(k) is exposing your retirement savings to too much risk.

A majority of your 401(k) assets may be invested in stock funds. That could present a problem in the near future. Bull markets don’t last forever – in fact, this one is pretty long in the tooth – and bonds aren’t the greatest alternative right now.

What if a bear market arrives? Could you stand to lose 10% or 20% of your 401(k) savings on the eve of your retirement?

At a certain point, you need to make conservative choices with the goal of preserving and enhancing your 401(k) balance. Does your 401(k) offer target-date funds? How sensitive are its fixed-income funds to rising interest rates? Does it give you a chance to have a self-directed account, or invest in ways that don’t have much correlation to the stock market?

Before you retire, take a fresh look at your 401(k) and its investment allocations. The more invested you are, the more you have at stake – and when retirement is approaching, you don’t have a lot of time to recover any losses you might suffer in a down market. So please call me or email me today so that we can schedule a time to meet and review your 401(k).

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

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Comment   |  3 years, 7 months ago from Boston, MA