by Linda Patch @ Caliber Wealth

Hello all,

Just checking to see if you know how your 401k is doing.  With all the Covid-19 turmoil, the election noise and recent social unrest, your 401k may not have been the first thing on your mind the past few months.  But now might be a good time to log in to your account and just check on how things are going.

Here’s the deal:  You probably won’t need to make any adjustments at all.  But if you are within two or three years of retirement, now is the time to make sure you’re in the right investment funds.

I had a client ask me last week what the best way was to “election-proof” his portfolio.  We laughed, but then I told him I actually can help him know how to weather the election!

There are three very important factors to consider when deciding on the right portfolio investments: 

  1. The purpose for the funds (in this case, retirement savings)
  2. How comfortable you are with some ups and downs in the market (risk tolerance) AND
  3. How long you have until you will need the money. 

Number 3 above is probably the most important factor of all.  If you have more than 10 years before you will be using your 401k money, you simply have time for the downs to come back up. 

So, the most important thing with retirement savings is to HAVE a plan, and then STICK WITH the plan, regardless of what else is happening in the world.  But if you are within a couple of years of retirement, and feel like you may need some adjustments to your portfolio, give us a call and we can see if there are changes that need to be made. 

Best regards,