Re-assess your risk tolerance, asset allocation and diversification

Your comfort with the ups and downs of the market — or risk tolerance — may be very different than it was during your saving years. Changes in your tolerance for risk, as well as the need to generate income from your savings, should trigger changes to your mix of investments.

Adjust your asset allocation for investing in retirement

Invest for the long term

Your retirement could last longer than your career. Staying invested in the market — even if your primary need is income — is critical to making sure your money lasts and you don't lose out to inflation.

Keep investing in retirement to capture potential growth and outpace inflation

Consider Roth IRA conversions

With new legislation and changing market conditions, a beneficial strategy may be to convert your traditional IRA to a Roth IRA. Earnings in a Roth IRA grow tax-deferred and qualified distributions are tax-free. In addition, there are no Required Minimum Distributions (RMDs) for Roth IRAs, so you only take distributions when you need to.¹

Understand the benefits of converting to a Roth IRA

Review your beneficiaries

To make sure your assets are distributed according to your wishes, it's important to review your beneficiaries.

Update your beneficiaries and explore ways to transfer wealth efficiently

Adjust your financial plan

You'll need to review and revise your financial plan regularly as you draw on your savings, continue investing and determine goals for your estate.

Review your financial plan so it remains in line with your needs

Monitor your accounts regularly

As you get closer to retirement, it's important to re-evaluate your asset allocation and monitor your accounts annually.

Re-evaluate your accounts

Review risk tolerance, asset allocation and diversification

Changes in your tolerance for risk should trigger changes to the mix of investments you own, called asset allocation, as well as how you diversify within your asset allocation.

Adjust your asset allocation to match your comfort with risk

Invest for the long term

Even in a down market, it's important to stay invested to keep your assets growing. Your retirement could last longer than your career, and you need to stay ahead of inflation.

Keep investing through market ups and downs

Establish a retirement income strategy

The transition from saving and investing to living off your savings takes careful planning. Now is the time to determine what you'll need to maintain your lifestyle — and then plan how to use your income sources through a retirement income strategy.

Determine how you'll turn your assets into income

Understand net unrealized appreciation (NUA) tax strategies

If your employer-sponsored retirement account includes company stock, you'll need to address net unrealized appreciation (NUA). By understanding some simple strategies, you can plan ahead to reduce the taxes you'll need to pay.

Understand the basics of NUA tax strategies

Consider a Roth IRA conversion

If you have one or more traditional IRAs, now may be a good time to consider converting them to Roth IRAs. A Roth IRA grows tax-deferred, qualified withdrawals are tax-free, and there are no required minimum distributions during the owner's lifetime. A law change effective in 2010 makes Roth conversions even more attractive.

Determine if converting to a Roth IRA is the right option for you

Assess risk tolerance, asset allocation and diversification

Risk tolerance is a measure of your comfort with the ups and downs of the market. Once you understand your own risk tolerance, you can create your asset allocation, and then diversify your investments within each asset class.

Adjust your asset allocation to match your comfort with risk

Invest for the long term

Although it may be tempting to pull out of a bad market, it's smarter to start investing for retirement or stay invested and weather the storm. In the past, the markets have always recovered, and fleeing the market may be a lost opportunity.

Stay invested through market ups and downs

Managing employer stock in retirement accounts

If your employer-sponsored retirement plan includes company stock, you'll need to pay extra attention to diversification and understand how you'll need to handle that money during retirement.

Understand how to handle employer stock

Consider a Roth IRA conversion

If you have one or more traditional IRAs, now may be a good time to consider converting them to Roth IRAs. A Roth IRA grows tax-deferred, qualified withdrawals are tax-free, and there are no required minimum distributions during the owner's lifetime. A law change effective in 2010 makes Roth conversions even more attractive.

Evaluate the potential benefits of converting to a Roth IRA