Retirees Are Keeping Their Money Longer in Retirement Plans. Should You, Too?

As you approach retirement age, you may be wondering what to do with the money in your retirement plan. In particular, you want to make sure you’re not losing money due to pesky fees and don’t want your asset allocation to be incorrect for your financial goals in retirement. We’ll break down what you need to keep an eye on, as well as give you some alternatives to taking out your money that can save you from unnecessary taxes and fees.

For more help making the most of your retirement savings plan, consider working with a financial advisor.

Keep an Eye on Fees and Asset Allocations

The first thing to keep in mind when it comes to your retirement plan is fees. Fees can eat away at your retirement savings, and high fees can significantly reduce your investment returns over time. Monitor the fees in your retirement plan and ensure that they are reasonable.

Some fees you may encounter in your retirement plan include:

• Administrative fees: These are fees charged by the plan sponsor to cover the costs of administering the plan. They can include recordkeeping fees, legal and accounting fees, and other costs.

• Investment fees: These are fees charged by the investment options in your plan, such as mutual funds or exchange-traded funds (ETFs). They can include expense ratios, sales charges, and other costs.

• Individual service fees: These are fees charged for specific services, such as taking out a loan or making a hardship withdrawal.

Asset allocation, on the other hand, is the process of dividing your retirement savings among different types of investments, such as stocks, bonds and cash. The goal of asset allocation is to balance risk and reward and help you achieve your retirement goals.

For example, if you invest all your retirement savings in just a few stocks stock, you could lose a significant portion of your savings if those stocks drop in value. However, if you invest in a mix of stocks and bonds, you can reduce your risk by spreading your investments across different…