09:18 15 April 2013
When you’re 5-10 years away from retirement, the first thing that you want to do is to ensure that your investments and savings techniques are working for you. You need to check the performance of your mutual bonds and your earnings on stock market for example. If you’ve invested in real estate property, you would want to know if the price has already increased so you’ll make profit in the long run.
Check if your earnings match your investment goals that you’ve set early on when you’ve started saving and investing. If one or two of your investments are not giving you the returns that you’ve hoped for, consider transferring your funds to other types of investments that are performing really well.
Also, keep in mind that at this stage, you need to lessen the risk that you’re taking as you cannot afford to lose huge amount of money when you’re nearing retirement. Instead of putting all your money in stock market, which is very volatile, consider diversifying your portfolio. Invest in bonds and other investment vehicles that are less risky.
Opening a Fidelity SIPP is also recommended. This is ideal if you want to consolidate all your pension into one account so you could reduce the charges you pay. This option offers expert guidance and wide choice of investment.
Disclaimer: Supanet is not responsible for, and disclaims any and all liability for the content of comments written by contributors to this website