FINANCIAL FOCUS: Don’t let low rates sink your retirement plans

Published: Thursday, January 16, 2014 at 06:23 PM.

If you’re concerned about low rates harming your future investment income, you have more reason than ever to review your portfolio and make adjustments as needed, relative to your objectives.

For example, if it seems that your portfolio has become “overweighted” in any one vehicle, you may need to change your investment mix, keeping in mind your individual risk tolerance. 

Redefine “retirement.” Retiring from one career doesn’t have to mean retiring from work all together.

If you decide to work part time, do some consulting or even open your own small business, you may be able to earn enough income to take some of the pressure off your investment portfolio in terms of providing you with the money you need to live on during retirement.

Also, by working during your nominal retirement years, you may be able to delay taking Social Security until you’re a little older, when your monthly checks can be larger. 

Review your withdrawal strategy. During your retirement, the amount you choose to withdraw from your investments each year will depend on several factors, including the size of your portfolio and the amount of income it is providing.

As you chart your retirement strategy, you’ll need to factor in a realistic withdrawal rate.

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