HTLF Retirement Plan Services
Retirement in Motion

How often should you check your retirement plan account balance? How can you make sure your stock fund is well-diversified? Find out in this quarter’s Retirement in Motion

Retirement in Motion

TIPS AND RESOURCES THAT EVERYONE CAN USE

Knowledge is Retirement Power

Many people use the 4% rule to guide their retirement withdrawals once they stop working. The rule proposes that withdrawing 4% from a retirement fund in the first year, followed by inflation-adjusted withdrawals every year after, should ensure money is available to last for a 30-year retirement. For example, a retiree with a $1 million nest egg would withdraw $40,000 the first year. The next year, they would adjust that $40,000 to reflect the rate of inflation and take out that amount. When your retirement comes, consider talking to a financial advisor about a withdrawal rate that is right for you, and customized to your age and life expectancy.

Q&A

Q: How often should I check my retirement plan balance?

A: For most long-term investors, once or twice a year is generally adequate. The closer you get to using the money (within two to three years of retirement, for example), the more you should check – just to make sure you remain on track to reach your savings goal.

Quarterly Reminder

Looking for some hot summer savings ideas? Check out these tips to help you save money and improve your budget!

  • Wash your car at home versus taking it to your local carwash.
  • Use your heat-generating appliances such as the dryer or dishwasher at night.
  • Consider using cold water to wash your clothing.
  • Hang your laundry outside to dry.
  • Check out yard and garage sales first for things you need (or have one yourself).
  • Avoid using your oven and stove by grilling outside as much as you can.

Tools & Techniques

Diversification is something to think about if you are considering investing in stock funds within your retirement account.

  • Size: Diversified stock funds may invest in stocks of small, medium, and large companies, because different-sized companies tend to lead the market at different times.
  • Style: Funds with different investment strategies, such as growth and value may help minimize volatility in your portfolio.
  • Sector: Funds that hold investments tied to many different parts of the economy may also help minimize the impact of a volatile market.
  • Geography: Financial markets around the world may respond differently to regional and global events. Funds with exposure to domestic and international stocks, including those from emerging markets may also respond differently to regional and global events.

Corner on the Market
Basic financial terms to know

In investing, a correction is a decline of 10% or more in the price of a security from its most recent peak. An asset, index, or market may fall into a correction either briefly or for longer periods. However, the average market correction is short-lived and lasts anywhere between three and four months.

Heartland Retirement Plan Services are offered through Dubuque Bank and Trust Company. The information provided herein is general in nature and is not intended to be nor should be construed as specific investment, legal or tax advice. The factual information has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Heartland Retirement Plan Services makes no warranties with regard to the information or results obtained by its use and disclaims any liability arising out of your use of, or reliance on, it. Products offered through Heartland Retirement Plan Services are not FDIC insured, are not bank guaranteed and may lose value, unless otherwise noted.