Coordinated Couples

You and your spouse are a team when it comes to managing your home and planning for your future. But are you in sync when it comes to investing for retirement?If you both have retirement plans through your employers, you might have chosen investments without consulting each other. Combined, your retirement plan investments might not reflect your intended investment strategy.

Retirement for Two

It’s important that investments fit your risk tolerance, investing time frame, and goals. Unless you and your spouse know the investments in each other’s portfolios, you could easily be duplicating investments unintentionally. Or, you could be overinvested in one investment type or asset class. As a result, your combined retirement investments could be exposed to more risk or be more conservative than you realize.

A Married Strategy

You and your spouse may want to spend some time determining an overall strategy for your retirement investments. As an initial step, consider how comfortable each of you is with the risk of investment losses. Look at the number of years you have before you’d like to retire and discuss your plans for retirement, such as traveling or relocating. Set a savings goal and coordinate an asset allocation strategy to help you get to your goal.

Next, take a look at the specific investment options available in your retirement plans. Review their objectives, fees and expenses, risks, and past performance. Then determine how you want to invest within each plan so that your overall allocation reflects your coordinated strategy. Depending on the investment options in each plan, you may choose to put more money into the stock investments in one plan and more into the bond investments of the other plan, or vice versa. Though it may turn out that neither of you will be broadly diversified* within your individual plans, that may be okay as long as your overall portfolio reflects your combined strategy.

* Diversification does not ensure a profit or protect against loss in a declining market.

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This publication is designed to provide useful information about retirement plans and investing your plan account savings. While the information contained herein was obtained from reliable sources, it cannot be guaranteed as to completeness or accuracy. Before acting on any of the information provided, consult your professional advisor.

FR2017-0629-0025/E © 2017 by OST Systems, Inc.