It's the third week of January. Have you taken an inventory of your current retirement investments yet? If not, consider doing so. January presents an excellent opportunity to evaluate your portfolio, your contributions, and your savings to ensure they align with your long-term goals. Here are three proactive steps adults should consider:
My investment portfolio
Are your investments diversified enough to weather potential market fluctuations? Consider whether your portfolio is balanced -- "rebalancing" can help you manage risk and ensure your investments are still in line with your risk tolerance and retirement timeline. There are many products out their to consider.
My retirement contributions
Are you maximizing your retirement savings contributions to retirement accounts such as 401(k)s, 403(b)s, or IRAs? Check if you're taking full advantage of any employer matching contributions or if there are opportunities to increase your savings rate. Adjusting your contributions now could have a significant impact on your retirement nest egg over time.
My savings accounts
Am I getting the most out of my savings account? It’s important to monitor interest rates and fees associated with your account as they can change over time. In the coming year, review your savings account(s) to ensure it’s still meeting your financial goals. Parents might also consider helping their children open a savings account -- an important step towards teaching them good financial habits.