As you approach retirement, it is wise to reduce risk while still giving your money a chance to grow. The most important thing is to protect the nest egg you have worked so hard to build. The goal is to balance preserving your savings with ensuring they can support you for years to come.
Plan for how you’ll spend your money in retirement. Consider your monthly expenses, healthcare costs and goals for travel and charitable giving. Your investments should reflect both the money you will need soon and your longer-term goals. Review them at least once a year to check that they still match your goals, risk tolerance and time horizon.
Statistically, 55-year-olds are likely to live beyond age 80. While it may be wise to reduce stock exposure in favor of generally more stable investments such as bonds and cash, maintaining a smaller allocation to stocks gives your money a chance to grow over a potentially long retirement. Continued growth can help your savings keep pace with rising costs over time.
Choosing and managing the right mix of assets before and during retirement can be challenging, especially when you’re evaluating investment options on your own. Find a trusted financial advisor who can help you understand your options and build a plan suited to your circumstances. Be disciplined and don’t let fear or excitement distract you. Then sit back, relax and enjoy the fruits of your labor.
For more resources, visit kofc.org/familyfinance.
*****
THOM DUFFY is head of investment advisory services for the Knights of Columbus and a member of St. George Council 3928 in Guilford, Conn.








