retirement

Countdown to retirement: One year to go

Retirement » Countdown to retirement: One year to go

No. 6: Dial back investment risk
No. 6: Dial back investment risk in retirement plans © Fer Gregory/Shutterstock.com

No. 6: Dial back investment risk

The recent financial crisis showed that the risk of a major downward movement of the market just before retirement is all too real, says Jeffrey Sica, founder, president and chief investment officer of Sica Wealth Management in Morristown, New Jersey. Surrendering 15 percent, 20 percent or even 25 percent of the value of your retirement portfolio in the year before you retire can torpedo the best-laid retirement plans. It can result in having to postpone retirement or cutting back on the post-retirement lifestyle.

That's why it makes sense to revisit asset allocation in your company retirement plan, says Murray. "Become more conservative in your company retirement plan," he says. "You don't want a major market decline to set you back financially."

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Countdown to retirement As you count down to retirement, make your transition to freedom a smooth one by taking these steps.
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