You know your car runs better and is more reliable when you keep it maintained regularly. The same concept applies to your retirement plan. Here are some ideas to “tune-up” your investment plan:
- Check how much you’re adding to your employer’s retirement plan. The annual contribution limit for a 401(k) is $18,000, and if you’re age 50 or older, you can contribute an additional $6,000. If you’re not already saving the maximum, consider a modest increase.
- Look at your mortgage balance and determine if you can pay it off, or significantly reduce it by the time you retire. Large debt, like a mortgage, is harder to support in retirement. Many people consider downsizing to a smaller home in retirement, or increasing their monthly mortgage payments while they are working to pay off the mortgage sooner.
- Review how your retirement savings is invested. It might be time to re-evaluate whether or not your investment options still meet your needs. Or perhaps you just need minor rebalancing — either way, it’s important to review your investments periodically.
Remember that regular review and occasional adjustment to your retirement plan will keep it running in top condition.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.