Life Stage Planning – Mile Marker #2: ADJUST YOUR PLAN

Mile marker #2:
Adjust your plan

During your 40s and 50s, you may be in the peak earning years of your career. This is the time to maximize your retirement contributions and make the most of savings opportunities offered by Uncle Sam. What if you have maxed out your IRA contribution and employer-sponsored plan? Take a look at annuities, which have no contribution limits and offer tax-deferral advantages.

Make sure that you diversify your investments. Never put all of your investments into one category. Spreading the money over different asset classifications reduces risk while helping to maintain overall performance. Don’t try to “time” your long-term investments. Professionals find it difficult to figure out exactly when to buy low and sell high. Don’t jump in and out of investments in reaction to the latest headline or stock quote. Invest regularly and for the long term. The value of some investments, particularly stocks and bonds, fluctuates in the short term. Over the long term, however, they usually gain in value.