Retirement Toolkit: How to Rebalance a Retirement Portfolio

This week Roger explains why rebalancing is one of the most important disciplines in retirement planning. In the Retirement Toolkit, he explores the difference between a traditional investment allocation and a retirement allocation, explaining how to organize your assets to support both your current lifestyle and your future needs. Along the way, he answers listener questions about speculative investments, the retirement red zone, the Rule of 55, and managing retirement cash reserves.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) Roger explains why portfolios naturally drift over time and why rebalancing helps keep your retirement plan aligned with your long-term goals.

RETIREMENT TOOLKIT

• (02:45) Roger explains how to rebalance a retirement portfolio, introduces his retirement allocation strategy, and shares practical tips for keeping your investments aligned with the life you want to live.

LISTENER QUESTIONS

• (34:50) BB asks whether a high-risk AI cryptocurrency investment belongs in a retirement portfolio. Roger discusses separating speculative investments from retirement assets and investing with intention.
• (39:30) Jim asks how the retirement red zone changes for people who retire early. Roger explains sequence of returns risk and why its impact depends on factors like retirement age and overall funding.
• (44:16) Jamie asks how the Rule of 55 applies to her 401(k). Roger explains why eligibility depends on the employer's retirement plan and recommends checking with the plan administrator.
• (46:53) Pat asks how to replenish a retirement money market account each year. Roger discusses coordinating withdrawals with tax planning and maintaining flexibility in retirement income.

SMART SPRINT

• (50:10) Roger encourages listeners to identify their target retirement allocation by defining how much they want in their contingency fund, income reserve, and long-term growth portfolio.

ON THE BOOKSHELF 

• (51:28) Nicole recommends Undistracted by Bob Goff, and Mark recommends Living Life in Crescendo by Stephen R. Covey and Cynthia Covey Haller. Roger shares his thoughts on lifelong growth and purpose in retirement. 

REFERENCES

• Submit a Question for Roger
• Sign up for The Noodle
• Undistracted: Capture Your Purpose. Rediscover Your Joy. by Bob Goff
• Living Life In Crescendo by Stephen R. Covey

Note: The opinions expressed are for informational purposes only and should not replace personalized advice from licensed professionals.