Finding the Right Mix of Investments
May 10, 2016Planner: Mark via 1 on 1 consultation
Problem: She needed to understand how her 401k worked and figure out the right mix of investments. She also wanted some tips on choosing a financial planner after she retired.
Suggested Action Steps: We reviewed specific 401k distribution options available through her employer’s retirement plan and discussed the pros and cons of directly transferring her 401k balance to an individual retirement account (IRA) once she retired. Completing a risk tolerance and asset allocation questionnaire would also help her see which balance of stocks, bonds, and cash might be appropriate given her time horizon for retirement and her individual appetite for investment risk. We also reviewed online tools available to assist her with locating and interviewing financial planners in her area if she needed additional financial guidance in the future.
Results: Armed with a better understanding of investment choices and distribution options within her 401K, she was able to rebalance her investment portfolio and select monthly distributions to support her income needs in a few months when she retires. In addition, she began to identify and interview a variety of Certified financial Planner(tm) professionals in her area for consideration in the future when she is looking for additional financial guidance.
Testimonial: “I was so relieved after our meeting I felt like a ton of bricks had been lifted from my shoulders!” – Anonymous