Adjusting 401k as I near retirement
Hi Terry I’m 61 and retiring in year I’m in fidelity fund 2020 I’m putting in 10% of check company matches 3% should I move to something safe or stay course.
Terry Says
A lot depends on whether you have other savings — preferably set aside outside your retirement plan in something safe like Treasury bills or short-term CDs.
Did you actually look at the prospectus of this fund to see what it invests in? I did — and here’s a link. It’s about 28 percent in U.S. stocks and another 16.5 percent in international stocks. The rest is in bonds, with only about 11 percent in short-term bonds. Personally that feels a bit aggressive to me — especially if you’re planning to retire soon. If the market drops, you won’t be buying more after your retirement, and your company won’t be matching. But they know that you will need growth over the next 30 years– for sure — to keep up with even a small amount of inflation.
So, as I started out this response, a lot depends on your overall financial plan — how soon you will need to use this money (perhaps you have other savings or will work part time). It’s not just a question of these investments but your need to use them.
