BECAUSE YOU BELONG

DOES YOUR SAVINGS PLAN NEED A TUNE-UP?
WE TAKE OUR VEHICLES IN FOR REGULAR MAINTENANCE VISITS TO AVOID A BREAKDOWN OR COSTLY REPAIR. YOU NEED A SIMILAR MAINTENANCE SCHEDULE FOR YOUR RETIREMENT SAVINGS PLAN.

There are many choices for building a retirement nest egg: investing in stocks or bonds, acquiring real estate or other assets, saving in high-yield accounts, etc. Each choice has
its pros and cons, depending upon your financial plan and the economy. The investment strategy you had when you were 40 may need updating when you reach 55. If you’re planning to retire within the next 10 years, this is a good time to schedule an appointment with your financial advisor to discuss any changes that may be necessary.
Here are a few things to consider.

CHECK UNDER THE HOOD
Have your circumstances changed since you established your original retirement plan? Weigh factors like whether you plan to work part-time in retirement, the value of a pension or other assets, and whether you and your spouse will retire at the same time. Add expenses for new items you’ll need, like long-term care insurance or increased medical services. With this updated financial picture, you can adjust your retirement plan to ensure you stay on track to meet your goals.

SAFETY FIRST
Your retirement goals may include risky hobbies like racing or sky-diving, but a high-risk investment plan may not be the best choice at this point in your life. The ideal retirement portfolio should be a mix of stocks, bonds, and shorter-term cash investments such as CDs. Make sure you're comfortable with the risk and rewards of each investment type. If the stock market takes a dive or real estate values plummet,
can your retirement account handle the stress? Generally, it is advisable to move money into “safer” investments such as high-yield savings accounts the closer you get to the
point in time when you actually need to use the money.

KEEP CASH WITHIN REACH
Stocks, bonds, real estate… these investment options must be liquidated before you can use the cash. That can take time and, depending upon the economy, you could be
forced to sell at a loss. As you get closer to retirement, you’ll want to ensure that you have access to your money when you need it. You’ll need the basics: 12 to 18 months worth of living expenses, plus a cushion to handle surprises. You’ll also want a sizable emergency fund close at hand. Savings products that earn interest will keep this money working for you with penalty-free access if needed. With a refreshed picture of your savings plan, it’s time to do the research for new savings solutions.

FOR MORE INFORMATION

Visit sec.gov/investor/pubs/roadmap/goals.htm or bankrate.com. Call 888-204-8990 or visit AAA.com/Deposits for more information on financial products from AAA.