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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2023
Rebalancing in Retirement
While you’re making contributions to your retirement plan(s) consider rebalancing your investments annually to maintain your chosen asset allocation.* It’s easy to do simply by contributing less to the investment class that’s forging ahead and more to the class that’s lagging.
A Different Process
Once you’re retired and no longer contributing to your plan, the process of rebalancing can be more complicated. Instead of allocating more or less money to one asset class, you’ll have to sell investments to reach your desired allocation. Typically, if you’re taking required minimum distributions from your tax-deferred retirement accounts, rebalancing can be part of that process.Why Rebalance?
Rebalancing your portfolio brings your asset allocation back in line with the investment mix you originally chose. Rebalancing may be even more important in retirement than it is while you’re accumulating assets. That’s because fluctuations in your allocations matter less due to your longer time frame for recouping losses. Once you’re retired, however, your goal will be to maintain your savings to ensure you’ll have enough money to last throughout your retirement.Reduce Risk
Taking too much risk with your retirement savings may result in losses that can leave you without enough income for the lifestyle you envisioned. Rebalancing your accounts may help reduce the risk that your portfolio won’t be able to recover from a drop in value.Control Volatility
Holding investments that are prone to wide market swings can be detrimental to your savings in retirement. If you have the option, selling off any volatile securities you’re holding can help keep retirement accounts on a more even keel.What You Can Do
There are several steps you can take to preserve your retirement funds and make rebalancing easier. Your financial professional can help you create strategies for maximizing your retirement income.*Asset allocation won’t guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.
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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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