What to do as retirement nears

Rebalance your portfolio

Even If your overall retirement savings are on target, you still need to look carefully at how you have that money invested.

The closer you get to retirement, the less risk you want to take, which means less money in markets that can swing wildly like stocks or commodities. Otherwise, a sudden market downturn could wipe out a big hunk of your hard-earned savings right when you need it.

Formulas exist for how you should invest for retirement at different points in your life, but consulting a professional can be wise in this case, especially if you have a complicated savings portfolio.

Another option is to put your money in a mutual fund that automatically shifts the balance of your investments as you age. These “target-date retirement funds” provide a good choice for those of us who don’t want to have to monitor our retirement savings closely.