First, look for ways to get rid of “clutter” in your portfolio. If you have too many investments that look alike, you might be hindering your progress toward your objectives.
Also, if you’ve been automatically moving money each month from your checking account to an investment, determine if this transfer is still appropriate for your goals. A systematic investment plan does not guarantee a profit or protect against loss in a declining market. You should consider your ability to continue investing through periods of low price levels.
Finally, check your beneficiary designations on financial documents, such as your insurance policies, IRA and 401(k). Over time, your family situation may have changed, through death, divorce, remarriage or the birth of new children.
By following these “spring cleaning” suggestions, you can help put your financial house in order for the future.
Follow a Withdrawal Strategy That Won’t Leave You Empty
When you retire, how much can you withdraw from your investment portfolio each year without running out of money? There’s no one right answer for everyone.
Generally speaking, of course, the younger you are when you retire, the lower your annual withdrawal rate should be.
Another factor to consider is the income you can expect from other sources. If you open a small business or do some consulting, you may be able to withdraw less from your investment portfolio than if you have no earned income during your retirement years.
You also may be able to make lower annual withdrawals if you’ve built up a sizable pension or 401(k), supplemented by your monthly Social Security checks.
By putting the right withdrawal strategy to work, you can go a long way toward enjoying your retirement.
Contact Wendell at Edward Jones www.edwardjones.com. |
