Bohemia, NY (PRWEB) February 04, 2013
On February 4, 2013, Savings2Income responds to a Chicago Tribune article by Janet Kidd Stewart which outlines four steps towards making sure a retirement portfolio is reliable.
The article, titled “It's time to take stock of retirement portfolio,” published by the Chicago Tribune on January 25 claims that “more than three-fourths of workplace plans offer target-date retirement portfolios, and nearly two-thirds provide managed accounts or investment advisory services according to Aon Hewitt.”
However, for those average investors taking care of retirement planning on their own, the article suggests four steps to make sure you’re getting the proper investments working for your retirement.
The first step mentioned is to set targets and allocate assets by dividing your retirement investments among stocks, bonds and other investments according to your time horizon and risk tolerance. The article cautions that one should be aware of what will work best in an investor’s particular circumstance. Different retirement plans require different risks in order to get the most out of investments.
Secondly, the article covers asset location. “Think about putting taxable bonds and high turnover stock funds into your traditional IRA and 401(k)s, while putting individual stocks and index funds in Roth or taxable accounts.”
The next step advises that investors provide themselves with a degree of flexibility. In the event an opportunity presents itself, shifting around assets can benefit the investor with a greater return on investments.
The article concludes by suggesting that an investor would benefit by checking on expense ratios and taking advantage of institutional pricing in your 401(k).
Jerry Golden, developer of Savings2Income, responds to the Chicago Tribune article, saying “While we agree with asset allocation and location, diversification and low fees being critical in a retirement plan, we believe the article misses two key elements.”
First, a retirement plan is all about creating retirement income that together with Social Security will support the investor’s lifestyle in retirement. The investor’s pre-retirement plans ought to be part of a comprehensive Plan for Retirement Income.
Second, to the extent the individual has savings outside of a 401(k) or Rollover IRA, he/she should consider a no load variable annuity. It offers tax deferral at a low cost, and flexible options to exchange to regular income payments that last a lifetime.
An innovative planning method that was created by Jerry Golden to benefit those recent retirees and those soon to retire called Savings2Income, seeks to provide a clear path to retirement security, and incorporates qualified savings, personal retirement savings and Social Security into an integrated solution.