My recent column about stress-testing your retirement funds brought an interesting response from many of my readers. I learned something: While you are delighted to have large balances in your retirement accounts, many have no idea how to reduce their risk exposure as they reach retirement age. So, that’s the focus of today’s column. But first, some background.

When 40l(k) plans first started replacing corporate pension plans about 45 years ago, the responsibility of retirement income shifted to individuals, not the company. At first, contributions to 40l(k) plans were voluntary, and few people contributed. But then companies started automatically enrolling employees – and even matching their contributions. And they added advisors to recommend funds for long-term growth and target retirement dates.

Your 40l(k) contributions participated in an incredible bull market. Forty-five years ago, the Dow Jones Industrial Average was below 1,000. Today it is well over 50,000! You didn’t have to be a genius to make money investing in the plan’s stock mutual funds with your regular paycheck deductions. The result is a huge account balance today.

And now, it’s time to take control. Consider these steps:

Give Yourself Permission and Knowledge
The first step in taking control of your retirement funds is giving yourself permission to make decisions. This is YOUR money! What has worked over your years of accumulation is likely not the best strategy as you entire your retirement. You can trust your instincts about how much risk you’re willing to take. Do not be bullied by a financial advisor who does not know you well.

Then you must understand the tax rules. Many people are afraid to switch out of their retirement plan mutual funds for fear of paying taxes. But there is no taxable event when you switch investments inside your plan. You don’t pay taxes until you actually take money OUT of your retirement plan. Then it is taxed as ordinary income in the year you withdraw.

And you need to know that there are ways to invest your money inside your IRA, to keep a portion of your money safe from market risk. You may lose out on some upside, but you won’t lose a penny of the money that you move to a money market mutual fund inside your IRA.

Now, that assumes your money is in an IRA with a major mutual fund company—one that offers both stock market funds and more conservative choices. With just one phone call or computer click, you are empowered to change your investments, or a portion of them, into something more conservative.

Roll Over Your Old 40l(k)
If you’ve already retired but still have money in your former company’s 40l(k) plan, you should consider doing a direct rollover of your old 40l(k) account into an IRA rollover account.

The reason to do the rollover is simple: Most 40l(k) plans carry investment choices primarily geared to younger workers who have a long-term investment perspective. Even those “target date” funds may have more exposure to the stock market than you’re willing to take at this stage of life. (Just look inside the plan’s investment report to see the percentage held in stocks.)

You can do the rollover on your own, with no tax consequences. The money stays inside your new tax-deferred IRA account. And you do not need a financial advisor to help you (and charge you fees and commissions!).

Simply contact one of the major mutual fund companies (Fidelity, Vanguard, T. Rowe Price) and ask for their help doing a direct rollover. You’ll need your latest account statement. They will contact your old plan administrator and handle the transfer. You never touch the money!

Your entire account balance is transferred in cash! When you make the transfer, ask them to put it all in their government securities money market fund. Then you can take your time, or get help, in making decisions about how to invest all that cash – very conservatively. At this stage of life, it is no sin to leave a substantial amount in that money market fund, where you won’t lose a penny.

Get Independent Advice
Learn to ignore “helpful advice”. Wall Street is eyeing those retirement account balances, offering a variety of services and hidden costs, recognizing that you are worried about your inexperience in making investment decisions.

But that advice comes with a cost – either a fee based on a percentage of your account balance, or from fees generated by the mutual funds they suggest.

Very rarely do these “advisors” take the time to review your entire retirement income picture, income needs and risk tolerance – as well as your tax situation, estate plan, and lifestyle goals. So, this is the perfect time to consider a couple of sessions with a FEE-ONLY, FIDUCIARY advisor, who is not trying to sell you anything.

The only way I know to be sure you are dealing with an advisor you can trust, is through Wealthramp.com – a matching service for carefully vetted, fee-only, fiduciary advisors.

(Watch the video I created with Pam Krueger, who created Wealthramp, by clicking on the “find your trusted advisor” box at TerrySavage.com. I get absolutely nothing out of this recommendation except the knowledge that you will be in good hands.)

It’s time to take control over your financial future – regardless of the direction of the stock market. If you want to make your money last your lifetime, you need to take control now. And that’s The Savage Truth.