With markets near record highs, should retirees take their money and run?
U.S. equity markets have had several years of substantial growth without a major downturn. The S&P 500 stock index has not experienced a correction (or 10 percent decline) since April 2011. At the same time, retirement balances are hitting new records. Fidelity reports the average 401(k) balance grew to $91,800 at the close of the first quarter of 2015 and the average IRA balance topped $94,000.
Some retirees—or those who are near retirement—may wonder if now is the right time to move money out of stocks.
Yet financial advisors usually dissuade older clients from changing asset allocations based on short-term market moves. Instead, many advisors suggest retirees take these three steps: