How Should I Manage My 退休计划?
Employer-sponsored retirement plans are more valuable than ever. The money in them accumulates tax deferred until it is withdrawn, typically in retirement. Distributions from a tax-deferred retirement plan such as a 401(k) are taxed as ordinary income and may be subject to a 10% federal tax penalty if withdrawn prior to age 59½. And contributions to a 401(k) plan actually reduce your taxable income.
But figuring out how to manage the assets in your retirement plan can be confusing, particularly in times of financial uncertainty.
Conventional wisdom says if you have several years until retirement, you should put the majority of your holdings in stocks. Stocks have historically outperformed other 投资s over the long term. That has made stocks attractive for staying ahead of inflation. Of course, past performance does not guarantee future results.
The stock market has the potential to be extremely volatile. The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Is it a safe place for your retirement money? Or should you shift more into a money market fund offering a stable but lower return?
And will the instability in the markets affect the 投资s that the sponsoring insurance company uses to fund its guaranteed interest contract?
If you’re participating in an employer-sponsored retirement plan, you probably have the option of shifting the money in your plan from one fund to another. You can reallocate your retirement savings to reflect the changes you see in the marketplace. Here are a few guidelines to help you make this important decision.
Consider Keeping a Portion in Stocks
尽管它的波动性, the stock market may still be an appropriate place for your 投资 dollars, 特别是从长期来看. And retirement planning is a long-term proposition.
Since most retirement plans are funded by automatic payroll deductions, they achieve a concept known as dollar-cost averaging. Dollar-cost averaging can take some of the sting out of a descending market.
Dollar-cost averaging does not ensure a profit or prevent a loss. Such plans involve continuous 投资s in securities regardless of the fluctuating prices of such securities. You should consider your financial ability to continue making purchases through periods of low price levels. Dollar-cost averaging can be an effective way for investors to accumulate shares to help meet long-term goals.
多元化
Diversification is a basic principle of investing. Spreading your holdings among several different 投资s (stocks, bonds, etc.) may lessen your potential loss in any one 投资. Do the same for the assets in your retirement plan.
记住, 然而, that diversification does not guarantee a profit or protect against 投资 loss; it is a method used to help manage 投资 risk.
Find Out About the Guaranteed Interest Contract
A guaranteed interest contract offers a set rate of return for a specific period of time, and it is typically backed by an insurance company. 一般, 这些合同是安全的, but they still depend on the financial strength of the company that issues them.
If you’re worried, take a look at the company’s rating. The four main insurance company rating agencies are A.M. Best, Moody 's, Standard & 普尔和惠誉评级. A.M. Best ratings are based on financial conditions and operating performance; Fitch Ratings, 穆迪, 和标准 & Poor’s ratings are based on claims-paying ability.
Periodically Review Your Plan’s Performance
You are likely to have the chance to shift assets from one fund to another. Use these opportunities to review your plan’s performance. 市场在变化. You may want to adjust your 投资s based on your particular situation.
The information in this newsletter is not intended as tax, 法律, 投资, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or 法律 professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2024 Broadridge Financial Solutions, Inc.