"To find out if you're on track to reach your financial goals, review your current portfolio balance, combined with your savings rate. Tally your contributions across all accounts. A decent baseline savings rate is 15%, but higher-income folks will want to aim for 20% or more.Also factor in other goals you'd like to achieve, such as college funding or a home down payment."
"Does your total portfolio's mix of stocks, bonds, and cash match your targets? High-quality target-date series such as those from Vanguard and BlackRock's LifePath Index Series can help benchmark asset allocation. My model portfolios can also help.A portfolio that tilts mostly or even entirely toward stocks makes sense for younger investors.If your portfolio is notably equity-heavy and you're within 10 years of retirement, shifting to bonds and cash is more urgent. Just mind the tax consequences when you rebalance."
Gather current investment statements plus Social Security and pension documentation and set up a My Social Security account to view benefits and earnings history. Review portfolio balance and savings rate, tally contributions across all accounts; aim for a baseline 15% savings rate and 20% or more for higher-income earners. Factor other goals such as college funding or a home down payment while protecting retirement savings. For retirees or imminent retirees, judge plan viability by withdrawal rate and use the 4% guideline as a starting point. Match total portfolio allocation to targets, rebalance while minding tax consequences, and hold cash reserves to avoid tapping investments; retirees should keep six months to two years of withdrawals in cash.
Read at Fast Company
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