Life Stage: Late Career

As your career winds down, you’ll want to focus on preparing for retirement income. As you transition from accumulating retirement assets to using them, you may need to reevaluate whether you are invested appropriately for this stage of your life. There are also some practical decisions you can make to help you get the most out of your savings.

Include inflation in your retirement planning

In figuring out the amount you’ll need to last through your retirement, remember to factor in rising costs. Inflation reduces your purchasing power: A dollar today will not go quite as far in the future. 

Investigate your retirement plan’s distribution options

Even though you may plan to stay in the workforce for a while longer, it’s a good idea to collect information about your distribution choices. Deciding how and when you will access the funds in your 401(k), IRA or pension plan is likely to be one of the most important financial decisions you’ll face.

Double-check your beneficiaries

Do you remember who you named as the beneficiaries for your accounts? We encourage investors to make sure their mutual fund account records are current, as family situations change. It’s easy to confirm who is named as your Homestead Funds IRA account beneficiary online.  Just log in to your account.

Define Your Priorities

Late career individuals often find their priorities have shifted. For example, you may no longer need to save money for education expenses. You might also want to take a more cautious approach to investing. With retirement approaching, you need to know your money will be available when you need it: You won’t want market cycles or economic conditions to determine when you can make a withdrawal.

Continue to fund your retirement savings

It’s wise to continue making contributions to your 401(k) and IRAs during this time. IRAs and some 401(k) plans allow you to make additional “catch up” contributions if you are over 50. Both types of accounts offer tax benefits as you save, helping to bring you closer to your retirement goals.

Consider shifting your investment mix

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.

Save for a celebration

If you know there will be a wedding to help pay for in the future, or a special anniversary celebration, or maybe a big trip you want to take in a year or so, consider creating a savings account just for that purpose. Invest money in a short-term fund and put it out of your mind for now: It will be there when you need it.


Use the right Homestead account

When you open an account with Homestead Funds, you’ll have a lot of choices: individual and joint accounts, taxable and tax-free, and qualified accounts designed for specific purposes such as retirement. We can help you determine the right type of account to use to meet your goals and your family situation.