Transitioning from working to retirement can be a challenge for some. Many of our lives have been underscored with a risk-reward relationship. We put in the work with the hopes of growth. Perhaps the same has been true for your portfolio: you’ve invested in stocks, bonds, and other financial vehicles. But as you approach retirement, it may be time to tame those risks to prepare for a season of life that requires you to depend on those retirement savings for your income.
Here are a few questions to ask yourself when cutting down risk for your retirement years.
Remember, you’re transitioning building wealth to using those retirement dollars you’ve invested and saved over the years. Maybe it’s time to take another look at what’s in your portfolio. Are you still invested in several stocks or have those transitioned into safer products like annuities? Chances are you can’t afford to take a hit to your portfolio in the event of a market decline.
If this is the case, your retirement accounts could be due for an update.
So, what if your retirement plan is in need of an update? Maybe you’re in that in-between phase where some of those accounts need to go from growth-focused to retirement-focused. It could be time for you to sit down with a licensed financial professional to discuss your options. They can help you figure out your personal risk tolerance, what you’ll need to support your retirement lifestyle, and the steps you need to work toward your new goals.
If you’re unsure where to start, find an American Retirement University class in your area or online to get started! Our classes are hosted by seasoned financial professionals who can talk about the latest news, information, and tools to help you start cutting your risk for your retirement years. Sign up for a class today!