Keeping tabs on your retirement accounts is a balancing act, particularly if you have more than one. Although some favor the set-it-and-forget-it approach, it’s wise to regularly review your accounts to ensure that you’re heading in the right direction.
Consider these simple tips to help you stay on track:
Review your account statements. Whether on a monthly or quarterly basis, it’s important to review your statements to ensure that your contributions are deposited in a timely manner and allocated to the investment options you elected. In most cases, retirement account statements are made available online through a web portal, but, if you wish, you can request to receive a paper copy instead.
Reassess your investments. It makes sense to periodically review your account portfolios to be sure that your asset allocation (the strategy of dividing your investments among different asset classes such as stocks, bonds, etc.) is still in line with your retirement saving goals and risk tolerance. Over time, your asset allocation can get out of alignment. When this happens, you can have your account rebalanced, restoring your investments to their original allocation. Alternatively, most 401(k) plans offer target-date funds—professionally managed mutual funds that automatically allocate the appropriate mix of stocks, bonds, and fixed income products according to the date that an investor expects to retire. Another benefit of target date funds is that they automatically rebalance on a periodic basis.
Take advantage of retirement education. As part of their 401(k) benefits offering, most companies provide retirement plan education and workshops. These resources are typically led by a skilled financial professional who can help you make positive retirement saving decisions, so it’s a good idea to take advantage of them.
If you prefer a technological approach, numerous financial planning tools, such as calculators, guides, and worksheets, are usually available through your retirement plan.
If you want help in reviewing your retirement accounts and making sure you are on track, reach out to me. I would love to help you!
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