When you have just two to five years until retirement, you can gain a more accurate picture of whether your investment return will be high enough to meet your goals. At this time, reduce your risk of losses by keeping employer stock ownership to no more than 10 percent of your total investments. Consider laddering individual bonds to mature in different years to spread the reinvestment rate risk. As you near retirement, follow your investments closely, keeping up with the changing investment technologies and planning services to help you carry out your investment strategy. Track your investments with a web-based tracking service or hire the service through a financial planner or investment advisor.
Retirement planning takes effort, but the investment in time is well rewarded.
From your working years until the year of your retirement, chart your progress. Seek the advice of financial experts to help along the way when needed. Charlotte Crawford, Extension Educator, Consumer and Family Economics.