Getting close to retirement D-day?
OK, you are proud of yourself…you have an asset allocation portfolio that is growing nicely as you approach retirement. You have a target date in mind and it’s not that far in the future. But as pleased as you are with the funds compounding, the idea is to initially hold an aggressive mix of stocks and bonds.
But as the D-Day nears, you need to balance with a more conservative approach. Initially you will have more stocks than bonds, a riskier situation but one that can be more lucrative. As your earnings increase, the money is invested in stocks as well. However, as you approach R-day, these funds should be reallocated to more dividend producing options rather than principal growth. Look into Target funds that make the portfolio adjustments for you, if you don’t want to be bothered with the specifics.
But whatever you do, pay attention to your retirement financial situation.
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