A retirement plan needs regular checkups to ensure it remains in good health. If you haven’t done it yet this year, you should set aside the time to do it before the start of the holiday season, which is usually the busiest time of the year.
According to the Center for Retirement Research at Boston College, 50% of households are “at risk” of not having enough to maintain their living standards in retirement.
Regular checkups of your retirement plan can keep you informed on whether or not you’re on pace to meet your monthly expenses once you retire and if you’ll be able to maintain your living standards.
You should check your contributions and account balances, and adjust accordingly. Also, if you have more than one retirement plan, check to see if it would be better to consolidate them, or if it’s best to keep them separate. If you have one retirement plan, check to see if it would behoove you to open another.
Depending on how close you are to retirement at the time of your “checkup,” you should consider shifting your investments around. If you’re close to retirement, a more conservative approach may be prudent to safeguard what you’ve accumulated. Conversely, if retirement is a ways away, a more aggressive approach may be in order.
No two paths to retirement are the same, so what works for one person won’t necessarily work for you. Consider talking to a financial advisor to help you map out your strategy and help you identify anything you may have overlooked on your self-checkup. That way you can get a plan that is catered specifically to your needs.
Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Investment products not insured by the FDIC. Not a deposit or other obligation of, or guaranteed by the depository institution. Subject to investment risks, including possible loss of principal amount invested. The information provided is for educational purposes only and does not constitute tax, investment or legal advice. Consult a professional wealth advisor to discuss your individual retirement savings needs.
Sources:
https://crr.bc.edu/special-projects/national-retirement-risk-index/
