Our Top 5 Tips For Rebalancing Your Retirement Accounts

The whole point of a retirement account is to set it up and let it grow over time, right? That’s technically true, but there are still some things that you need to do to your account for it to grow properly, or else you could be missing out on a substantial amount of cash. To help ensure that your funds reach their full potential, learn about how to rebalance your retirement accounts with these top tips put together by your trusted retirement planners at A. Roberts & Associates!

What Is “Rebalancing” And Is It Really Necessary?

When you’re out buying the same groceries and other goods that you normally do, it’s easy to notice changes in pricing. After all, inflation is an inevitable side effect of a growing economy that affects everyone. But have you ever thought about what that means for your investments? Those who have a 401(k) tend to set it and forget it, and individuals who sign up for an IRA account may have a habit of sticking to their original contribution amount without thinking to adjust it. The act of rebalancing your retirement accounts can allow you to fix your investments so that they fall in line with economic changes, helping you get the most out of your money by the time you need it.

Our Top Tips For Rebalancing Retirement Accounts

Whether you’re new to rebalancing accounts or you want to touch up your best practices, take a look at these useful tips from your local financial experts at A. Roberts & Associates:

  1. Rebalance Your Accounts Once A Year (Minimum)

To keep up with current market trends, it pays to evaluate and rebalance your retirement accounts rather often. Once a year is usually recommended, but each person may be different.

  1. Plan For The Future, Not The Past

Many investors base their decisions on events that have already transpired, but that won’t do you much good for the future. Try to make your choices with the goal of getting ahead of the curve.

  1. Consider Consolidating Your Accounts

If you have multiple retirement accounts, it can be more work to rebalance each individual account. If you consolidate them, there will be less to worry about thus leading to a better chance of success!

  1. Adjust Your Contribution Amounts

As mentioned earlier, it may not be in your best interest to maintain the same level of contributions in a fluctuating market. Try to account for the changes and increase your contributions accordingly.

Try our retirement tax calculator to help with your financial planning!

  1. Choose Your Investments Wisely

Don’t fall into the trap of investing in assets that are doomed to faze out with coming and going trends. Focus on investments that have the potential to stay relevant in the long term, ideally in the next 5-10 years.

Find A Qualified Retirement Planner Near You!

Need assistance in rebalancing your retirement accounts, or anything else to help secure your future? Call your trusty retirement planners at A. Roberts & Associates for expert guidance surrounding your retirement! Contact us anytime to ask our friendly team about our retirement planning services and to schedule a consultation.