Investing In Retirement Years

Asset Allocation-Repositioning your Investment

As you approach retirement, you may need to reposition your qualified plan investments to help better meet your goals.  If you are within 5 years of retirement, and are planning to annuitize your retirement plan balance or take a lump-sum distribution (versus leaving the funds in your employer’s plan), you may want to temporarily adopt a short to mid-term investment philosophy with your qualified retirement plan funds.  You may want to lock in some of your equity gains and adopt a more conservative investment approach.  Then when you receive the qualified plan amounts, you can implement a long-term strategy.  

Whenever you shift your investments, consider using a dollar cost averaging strategy when repositioning your investments.  The timing for shifting the investments depends on several factors, including the current economic environment, your need for income in retirement, and the amount and structure of your entire portfolio.