A 67-year-old, nearing retirement, wrote to MarketWatch seeking advice on managing their $870,000 401(k). They plan to retire within a year or two and are concerned about making their savings last. The individual acknowledges having done “fairly well” with their retirement savings so far.
The MarketWatch article features expert advice from financial planner Brian Vendig. Vendig suggests a multi-faceted approach. He recommends the individual create a comprehensive financial plan projecting income needs in retirement, considering factors like healthcare costs and desired lifestyle. This plan should analyze different withdrawal rates to understand the longevity of their funds.
He emphasizes the importance of considering Social Security claiming strategies, weighing the benefits of claiming early versus delaying to maximize monthly payments. Vendig also advises against making drastic changes to the portfolio, but suggests evaluating risk tolerance and adjusting asset allocation accordingly. Given their age, a shift towards a more conservative portfolio with lower volatility is recommended, emphasizing a balance between growth and income. Finally, the expert advocates for professional financial advice to help navigate these decisions and develop a personalized retirement income plan.
find the original article here: https://finance.yahoo.com/news/im-67-870k-401-k-123500319.html