Investing By Life Stage
Late Career

As your career winds down, you’ll want to be sure you’re on track with your retirement income goals. You'll also want to be sure you are invested appropriately for this stage of your life. Below are some suggestions that may help you.

Keep adding to your retirement accounts

Continue contributing to your 401(k) and IRAs during this time. Both of these types of accounts offer you tax benefits as you save for your future.

Learn about your retirement plan’s distribution options

Even if you plan to be in the work force for a few more years, it’s a good idea to collect information about your distribution choices. Deciding what to do with the money in your 401(k), IRA or other pension plan is likely to be one of the most important financial decisions you'll face.

Double-check your IRA beneficiaries

Do you remember who you named as the beneficiaries for your accounts? This is a good time to make sure your mutual fund account records are current. It’s easy to check online who you named as your Homestead Funds IRA account beneficiary just log in to your account.

Check to make sure your income will meet your needs

If you have invested diligently over many years, you probably have a comfortable nest egg for retirement. As you consider the amount you'll need to last through your retirement, remember to factor in rising costs. Inflation reduces your purchasing power — so a dollar today will not go quite as far in the future.

How to choose investments for this stage

As you near retirement, your desire to achieve maximum account growth would typically be tempered by a growing need for principal stability. With retirement approaching, you need to know money will be available for you when you need it — not when market cycles or economic conditions create an advantageous time for you to make a withdrawal. Most investors nearing retirement will seek to balance their portfolio by investing a portion of assets in funds suitable for a short time frame, such as money market and short-term bond funds, while keeping some assets committed to long-term investments, such as stock funds.

For personal assistance selecting Homestead Funds, call one of our friendly client service associates at 1-800-258-3030. For online information to help you select funds, go to the "Funds and Performance" section of this website.