Managing Your Portfolio For Retirement
In the past few years, the value of U.S. retirement plans have lost almost 2 trillion dollars. So, if you are betting on your 403 b retirement plan and/or alternative retirement plan to support you throughout your retirement years, you should start to devote some serious attention to your monthly or semi-annual retirement plan statements.
Most investors, after they’ve chosen the initial investments for their retirement portfolio, rarely take another look at it. To have the best chance of actually having a retirement portfolio that will support you once you retire, you have to manage it.
computations] are easy if you use financial planner software to plan your portfolio.
Once you’ve computed your portfolio’s current value, depending on how long you have until retirement, you may have to re-assess your retirement options.
If you’re fortunate, your portfolio will have out-performed your income projections. In this case, you won’t have to modify your retirement plans much, if at all. If, however, like most people, your portfolio has under-performed your income projections, you have some hard decisions to make.
Typically, the choices you have will fall into one of three options. 1) You can decide to step-up the amount of money that you are currently putting into your account to bring it up to what you’ve projected its value to be at this point. 2) You can downsize your expected retirement lifestyle to match your portfolio’s new projected future value based on it’s value today.
And the last option, and one that many near retirement age are looking at is either put off their retirement for a few years to build up their retirement nest or to plan on working part time once they do retire, to avoid lessening their standard of living.
For more information on 401 k rollover plan and other retirement options visit Eric’s site.