Retirement Planning: How Do I Reach My Retirement Goal?

For many people with 401(k)s or IRAs, knowing how much risk you can take on means making adjustments to your investments over time. Investors with target-date funds — which automatically re-balance — might be shouldering more risk than is appropriate for their age, said Jerry Linebaugh, president of JLine Financial and an expert in estate and income planning.

Many target-date funds have stock allocations as high as 65 percent. If you are 65 years old and take a beating in the stock market right before retirement — as some folks did in 2008 — you can lose 20 percent to 30 percent of your retirement assets, said Linebaugh. Losing so much value in your portfolio late in life can cause lasting damage to your retirement plans.

Note: These are the opinions of Jerry Linebaugh and the authors and not necessarily those of the Foundations Investment Advisors, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.

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