Recommended Frequency for Monitoring
It’s important to check back now and then to make sure your investments are still in line with your investment goals. Through periodic check–ins and reviews of your retirement plan at least once a year, as well as whenever you experience a life change — such as marriage, job change, purchase or sale of a house — you’ll keep your retirement plan in line with your goals.
What to Look for When Reviewing Your Portfolio
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Perhaps the most obvious factor to watch for is portfolio drift. Over time, your portfolio’s asset allocation will shift incrementally due to the differences in performance among the various asset classes. A large shift can lead to a substantial difference between your planned — or target — and actual allocation. Be sure to review your portfolio annually and rebalance as needed so that it more closely corresponds to your target allocation. Diversification/asset allocation does not ensure a profit or guarantee against loss. In addition, if you've not yet retired, as you approach your retirement date, you may want to change your target asset allocation. Generally, nearing retirement means a gradual shift away from an emphasis on growth and a shift toward a more conservative mix, depending on your withdrawal needs. When reviewing your plan, ask yourself the following questions:
You can monitor your plan and investments through myPlanSM Monitor. After reviewing your plan, you’ll have access to the appropriate retirement planning tools depending on your situation. If you are still saving, consider saving to appropriate tax–advantaged savings vehicles, taking advantage of catch–up contributions, and using taxable accounts for your situation. Are you managing your spending and debt in a way that allows you to save for your retirement goal?
If you are retired, make sure you’re withdrawing money in a tax efficient way and that you are managing your spending in a way that will help make your money last as long as you need it to.
Fidelity Portfolio Advisory Service® is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. Fidelity Private Portfolio Service® may be offered through the following Fidelity Investments companies: Strategic Advisers, Inc., Fidelity Personal Trust Company, FSB (“FPT”), a federal savings bank, or Fidelity Management Trust Company (“FMTC”). Non–deposit investment products and trust services offered through FPT and FMTC and their affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. These services provide discretionary money management for a fee.
The tool’s illustrations result from running a minimum of 250 hypothetical market simulations. The market return data used to generate the illustration is intended to provide you with a general idea of how asset mixes have performed historically. Our analysis assumes a level of diversity within each asset class consistent with a market index benchmark that may differ from the diversity of your own portfolio. Please note that the projections do not reflect the impact of any transaction costs or management and servicing fees (except variable annuities); if these had been included, the projected account balances would have been lower. IMPORTANT: The projections or other information generated by Fidelity’s Retirement Income Planner regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. |
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