If you have questions about selecting, investing, and rolling your 401k into an Individual Retirement Account (IRA), Maestro Wealth Advisors is here to help. This guide strives to educate you and answer many of the most pressing 401k and IRA questions.
- What are 401k’s?
- What should be in your 401k now?
- When is the right time to roll a 401k over?
- When should you start taking withdrawals?
- What should you be investing in?
- What are the greatest risks to your retirement investments?
- How can Maestro Wealth Advisors help?
It’s possible your investment objective will change as you move into retirement or your portfolio grows. For example, your strategy may become more conservative to preserve wealth when you achieve a certain level of comfort (and other factors permit).
Your time horizon and cash flow need are key investment factors for achieving the retirement you envision. A good way to establish your portfolio’s objective is to define how much money you want to have at the end of your time horizon. (This is called your “growth objective”). This dictates the strategy you should take and what level of assets you want to leave behind.
Some investors become overly fearful of volatility. Trying to preserve their net worth, the shift their asset allocation heavily toward bonds or other fixed-income instruments. Because interest rates and bond prices have an inverse relationship, rising interest rates cause fixed income holdings to lose value, this isn’t a good strategy. Selling these holding before they mature translates to significant losses. The higher interest rates climb, the worse the total return.