5 Years From Retirement: Have You Determined How to Create a Retirement Paycheck?
July 16, 2015 | Enjoying Retirement
When you’re five years away from retirement—whether you’re 50, 60, or 62—one of the things you’re probably thinking about is reeling in the risk on your investments and taking a more conservative approach with the assets you’ve accumulated. After all, if the market takes a nosedive in two years, you may not be able to recover your losses by the time you hope to retire.
So, how should your asset allocation change as you near retirement? There are long-held rules of thumb and a plethora of online calculators that can help you answer that question. But is that really the question you should be asking yourself?
“The fact is, when you’re five years away from retirement, it becomes less about the performance of your investments,” said Angela DiCastri, director of retirement planning at Northwestern Mutual. “Instead, there’s a different question you should be asking yourself and your financial advisor.” You need to start asking yourself how you will take the assets you have accumulated and turn them into a paycheck.
DiCastri and Wealth Management Advisor Hans Myklebust address the topic in Northwestern Mutual’s latest webcast, Pay Taxes Now or Later: Retirement Strategies Beyond a 401(k). To view the entire webcast, click here.