Still working but starting to think seriously about retirement? You’re not alone. If you’re in your 50s or early 60s, this is a crucial window to adjust your investment strategy so you can retire with confidence even if you don’t have a million dollars saved.
Shift from Growth-Only to Risk-Aware
For most of your career, the goal was simple: grow your money. But now, protecting what you’ve built matters just as much as growing it. This is the time to consider gradually reducing exposure to high-volatility stocks and diversifying across asset classes such as bonds, cash, and dividend-paying funds. Think of it like landing a plane. You don’t cut the engine, but you prepare for a smoother descent.
Keep Contributing but Smarter
Maxing out your 401(k) or IRA is still valuable, especially if you’re using catch-up contributions. But now is the time to think beyond just how much you save. Consider whether you’re using Roth contributions strategically, whether you’ve built up a taxable brokerage account that offers flexibility in retirement, and whether it’s time to rebalance your portfolio to reflect your updated time horizon.
Stress-Test Your Plan
It’s helpful to simulate a few what-if scenarios. Ask yourself what would happen if the market dropped 20 percent next year, if you needed to retire earlier than planned, or if inflation stays higher than expected. This isn’t about fear. It’s about being prepared, not surprised.
Avoid Knee-Jerk Reactions
As you approach retirement, market headlines can feel more personal. But the best investors stay steady. One way to maintain that discipline is by creating an investment policy statement, even if it’s just for yourself. Focus on your long-term goals rather than trying to guess where the market is headed. Keep in mind that your retirement is likely to last 20 to 30 years. It doesn’t end at retirement.
Get Clear on Purpose
Every investment you hold should serve a purpose. Some are meant to generate income, others are designed for long-term growth, and a few might simply be there to help you sleep at night. If you can’t explain why you own something, it may be time to rethink whether it belongs in your portfolio.
What You Can Do Next
If you’re five to ten years from retirement, this is the right time to take inventory of what you own, revisit your goals, and make sure your investments align with both your timeline and your comfort level. Retirement doesn’t begin with a finish line. It begins with a shift in mindset.
At Custom Fit Financial, we specialize in advice only fee only retirement planning for individuals and couples age 55 and over. We offer hourly and project based financial planning with no sales pressure or product commissions. Whether you’re in Cedar Rapids, Iowa City, or working with us virtually across the United States, we help you make confident informed decisions about your retirement.
Ready to plan your retirement with confidence? Schedule your free intro call today.
