Extreme stock market gyrations have a way of dashing the confidence of both retirees and retirement savers. Having seen their balances recently take a hit, they wonder: Will I have enough? Should I reduce my stock exposure, or swap into holdings that entail less risk? Or should I gun for riskier investments in an effort to make up for a shortfall?
Lying awake worrying about these questions isn’t productive; answering them concretely is. Morningstar’s 5-Point Retirement-Portfolio Assessment special report is designed to help investors gauge the viability of their retirement plans, step by step. Of course, how much you save and how much you spend, both in the years leading up to and during retirement, will be the major determinant of your retirement plan’s success or failure. But portfolio construction and quality can also make a difference, so we’ll cover those issues, too. For investors who determine some changes are in order, the report will include concrete, action-oriented ideas.
Monday | Jan. 25: Check Up on Your Portfolio’s Viability
Will I have enough? Am I at risk of running out? For retirement accumulators and people already retired, those are THE questions. On Monday, we’ll give you some guidelines for answering them with certainty. For those who have run the numbers and determined they’ll confront a savings shortfall as they hurtle toward retirement age, we’ll share some ideas on how to make a save.
Accumulators: Is Your Retirement Plan on Track?
Rules of thumb won’t cut it for this important question; how to customize based on your own situation.
Retirees: Are You Spending Too Much?
The 4% guideline can put you in the right ballpark, but the best spending policies factor in time horizon, asset allocation, and market fluctuations.
3 Key Gauges on Your Retirement Dashboard
Be sure to keep tabs your withdrawal rate, cash reserves, and a good performance benchmark for your investments, says Morningstar’s Christine Benz.
How to Close a Retirement Savings Gap
A trio of financial planners shares their tips for addressing a retirement shortfall.
Tuesday | Jan. 26: Gauge Your Asset Allocation
A portfolio’s mix of stocks and bonds will be the most important determinant of how it behaves, but the “right” asset allocation depends on a lot of factors–time horizon, nonportfolio retirement assets like pensions, and risk capacity, to name some of the biggies. Tuesday’s lineup will help you home in on an asset allocation that’s customized to your own situation and preferences.
Wednesday | Jan. 27: Evaluate Holdings Quality
Many investors end up with a “collection” of investments, some of which appear well poised for the future and others that may be past their prime. On Wednesday, we’ll discuss how to ensure that all of your retirement-portfolio holdings are best of breed. We’ll also tackle how retirees can maintain ample growth potential in their portfolios while also choosing holdings that limit downside volatility. We’ll pay special attention to the role of dividend-paying stocks in retiree portfolios.