Investment Goals Change in Retirement

Radio Transcript, 60 seconds, for use during week of March 3.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

As your retirement nears, your investment strategy should change.  The usual advice is to be less aggressive than when retirement was several years away.  Then you could ride out the down swings in the market.  But don’t go overboard in reducing your exposure to risk.

Being too conservative can put you in danger of  not keeping up with inflation.  It’s wise to invest at least some of your portfolio with growth in mind – even in retirement.

One way to guarantee that you won’t outlive your money is to have a lifetime annuity.  Just make sure it is indexed for inflation, otherwise it will buy less as time goes on.

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.