Is your retirement portfolio planning on track?
As you get closer to retirement, your investing strategy may change. When you're early in your career, focusing on growth potential may be your most important goal. But as you near retirement, making sure your savings last becomes a bigger priority. Here are a few considerations to help in your retirement portfolio planning as you transition from building retirement savings to generating retirement income.
Cash is king
Having access to cash is always important, regardless of your age, to help you prepare for unexpected events, including market volatility. Along with an emergency fund, you may want to consider including some cash investments in your retirement portfolio. This can help cover expenses if your other investments unexpectedly lose value.
Strive for stability
Even when you start withdrawing money, you still want the potential for growth. By balancing risk, potential return, and the size and timing of your withdrawals, you can develop a strategy that meets your income needs throughout retirement. This approach can make retirement income planning a lot less stressful, although your results largely depend on how the market performs.
Consider an annuity
Immediate annuities, offered by insurance companies, are contracts where you make an up-front payment in exchange for a guaranteed stream of income over a specified period or for life. And while annuity options for retirees can be a great option, there are potential downsides including lack of liquidity, possible inflation risk, and the fact that payments are fixed. Just like with other financial decisions, be sure to take time to review fees, benefits, and potential risks to ensure any product you’re considering aligns with your financial goals.
Consult with a financial professional
There are many ways to prepare your portfolio for retirement, but you might want some guidance in managing retirement savings along the way. If you do, then consider working with a financial professional who can help you figure out your retirement income needs and adjust your portfolio to effectively meet your needs.
For complete information about a particular investment option, please read the fund prospectus. You should carefully consider the objectives, risks, charges, and expenses before investing. The prospectus contains this and other important information about the investment option and investment company. Please read the prospectus carefully before you invest or send money. Prospectuses may only be available in English.
Important disclosures
Important disclosures
There is no guarantee that any investment strategy will achieve its objectives.
It is your responsibility to select and monitor your investment options to meet your retirement objectives. You should review your investment strategy at least annually. You may also want to consult your own independent investment or tax professional or legal counsel.
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
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