We are halfway through 2024 and it’s a great time to take a step back and review your retirement plans. Watching the markets on a daily basis is not helpful and can be stressful but remember that it is the long-term trends of the markets that matter. For all savers, make sure your portfolio is well diversified.
Ten Years from Retirement
Ten years is generally the equivalent to a full market cycle. A decade out from retirement still gives you time to ride the ebbs and flow of the market but if the last few years have felt a little nerve-wracking, it’s a great time to meet with a Financial Consultant from TIAA or CAPTRUST to review your portfolio and discuss your risk tolerance and ensure that your asset allocation still meets the goals of your overall financial plan.
Five Years from Retirement
You are five years out from retirement and it will go quickly! Don’t wait too long to plan where you will generate your income from once your paychecks end, the day before retirement is not the time to do so. Talk to your Financial Consultant about your preliminary retirement income plan and how you can diversify your potential sources of retirement income. There are also various tax strategies to consider which may require you to rearrange your assets. Make sure you are taking advantage of all tax-deferred accounts and utilizing the catch up contributions if eligible. Don’t forget to consider a fixed annuity, this can help provide payments as long as you live.
One Year from Retirement
You are almost there! Now is the time to revisit your retirement income plan and review your investment portfolio to help replace your wages. TIAA suggests although every situation is unique, the general rule of thumb is to start by dividing your income sources into approximately one-third from annuity payments, one-third from Social Security payments and any pension payments, and one-third from investments and savings. Another way to think about this is two-thirds of the sources are from guaranteed income and the one-third from savings that is more susceptible to market volatility. This ratio will help dampen the effects of market downturn in your years approaching retirement and during your retirement.
Schedule an appointment with CAPTRUST or TIAA today at no cost. It is never too early to start preparing for retirement. To contact CAPTRUST, you can schedule a virtual appointment by going to www.captrustadvice.com/unc. For TIAA, you may reach out to advisory service at 1-866-842-3519 or schedule online at www.tiaa.org/schedulenow.
To review TIAA’s How to Invest as You Near Retirement article in more detail, click here.