Question

Casey is a 55-year old woman who works for a company that offers a 401k plan and a pension. She wants to retire in ten years, but her pension and social security will not provide her with enough secure income during her retirement years. She has several brokerage accounts with investments that have fluctuated up and down, and she is concerned that she might have to delay her retirement if her brokerage accounts don't go up enough, or worse, go down. What should she do?

Answer 1

This is good question as part of retirement planning. Considering her 401k and pension plan as part of stable income for her retirement, if she has three to four brokerage account where she holding very good amount of holdings of stock in different sector, depending upon the sector performance if something goes up that point of time she should immediately sold and transfer these money to stable and risk free return products like liquidity fund and treasury bill instruments. At the current age 55 to 60-62 year, gradually she transfer her brokerage holding to safe asset and once she feels the retirement fund is enough to take care the post retirement and then immediately stop working.