Tuesday, August 25, 2009, AM | 1 Comment
Given the state of this lousy economy, higher unemployment and the market’s recent history, you might be concerned about making your retirement savings last.
There are many steps you can take – both before and during retirement – to help get your retirement savings back on track, from carefully reviewing your expectations to readjusting your investment portfolio.
The sooner you get to work on your retirement savings, the more effective your efforts may be.
New retirement savings and investment strategy
Consider plotting a new retirement savings and investment strategy based on your present circumstances. Once you know where you stand, consider the full range of lifestyle and investment adjustments you can make to help give new life to your retirement strategy.
Reevaluate your budget
Nothing remains the same. Hopefully, your home mortgage has been paid off and you will have in general less expenses in your retirement. In any case, examine your current budget and adjust it based on the ways your expenses and income are likely to change.
Count Your Retirement Income
After you have projected the expense side of your retirement ledger, you will want to turn your eye to the income side. You will have some income from Social Security, and you may receive funds from a pension, annuity, or other sources.
Revise Your Plan
A drop in the value of your nest egg may mean you will need to increase your savings efforts to meet your target retirement number. So make sure you are taking full advantage of all available tax-advantaged retirement savings options.
Position Your Portfolio
Investing properly for your needs can help you maximize your retirement savings. Your task is to build and maintain a portfolio that offers a balance of growth potential and risk at a level you can be comfortable with, and that is appropriate for helping you reach your savings goals.
In a Nutshell
Stay in Control. It can be difficult to watch the stock market’s ups and downs, especially when you worry that a comfortable retirement may be at stake. So talk to your financial adviser.