How Soon Before Retirement Should You Adjust Your Portfolio?

Today’s Ready for Retirement episode covers when to adjust your portfolio as retirement nears—a crucial step for balancing growth and security. If adjustments happen too late, market downturns could delay your plans; if too early, you might miss out on potential growth. The focus is on reallocating stocks to more stable investments like bonds as you approach the time you’ll need to start drawing from your portfolio. Historical data shows that while the stock market grows over the long term, short-term volatility can be risky close to retirement. Timing this transition, often starting about 10 years before needing funds, provides a smoother adjustment and reduces risk. Besides financial factors, psychological comfort with market swings also matters. Striking the right balance helps ensure your retirement funds last while maintaining your peace of mind. Questions answered: 1. When should I start adjusting my investment portfolio as I approach retirement? 2. How can I balance growth potential with stability in my retirement portfolio to minimize risks and ensure financial security? ======================= 🔗 Connect with us → https://learn.rootfinancialpartners.c... Get access to the retirement software I use and more → https://retirement-planning-academy.m... _ _ ⏱Timestamps:⏱ 0:00 - Protect against stock market decline 2:22 - Investment fundamentals and market trends 6:12 - When will you need the funds? 8:06 - Risk capacity 10:55 - Consider dividends and interest from bonds 14:20 - Use bonds for a specific purpose 17:07 - Risk tolerance 20:59 - 5-10 years before retirement 24:36 - Goal: minimize risk and regret -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.