REVIEWING YOUR RETIREMENT PLAN

A comprehensive review of your retirement plan every few years is almost as important as having a retirement plan. What you save for retirement is one of the most important financial challenges you might face in your lifetime so make sure you review and monitor it often.

Retirement Goals--Do the goals you originally set still apply? Do you still plan to retire at the age you first decided upon? Has an illness or other life event changed your retirement goals? Are your investments growing in a manner to finance your retirement goals? You might need to reevaluate your goals or set some now ones periodically because changes are constantly being made in our lives.

Personal Finances--Is your income more or less than when you originally set up your retirement plan? Do you have additional income to invest from a second job or your spouse's job?

Have you had a bankruptcy or had to make major purchases in the past few years that might affect your retirement plan? Do you have children in college that might dip into your retirement funds? Have you had to withdraw some of your retirement investments for personal use? Your circumstances at any given time will dictate what you can put back for your retirement.

Spending Habits--Have your spending habits changed significantly since you last reviewed your retirement plan? Maybe you got married or divorced, had a child, changed jobs, bought a home, made a large purchase, went middle-age crazy (yes, it happens to the best of us), or just don't seem to get around to saving regularly for your retirement.

Look at your budget and see if there are ways you can free up some extra money to put aside for your retirement. If you see you are putting too much aside, you might use the extra for a much needed vacation.

Investment Portfolio--Here is where you really need to closely scrutinize how your portfolio is balanced to get the most for your investment dollar. Depending on your age and how close you are to retirement will dictate whether your portfolio will consist of investments for growth, income, or a combination of both. Now is a good time to look at the companies you have invested in to be sure they are performing satisfactorily.

Social Security--If you haven't already done so, you should get a statement of earnings from the Social Security Administration to tell you what you can expect to earn when you retire. This statement is also a good way to make sure there are no mistakes in your account. Look over the figures and if you have questions or find a mistake, call the SSA immediately.

Health and Life Insurance--If you are working, chances are you have both health and life insurance but will these still be available when you retire? Some companies offer both to retirees but what will happen if you leave employment before retirement age? Have you made provisions for health and life insurance coverage or at least discussed these with an insurance agent?

Pension Plans--If your company offers a pension plan, do you know what type of plan it is? Does your company offer matching funds? Are you contributing all you can to the plan? Can you choose the investments and do you know how well they are doing?

How long does it take to be vested? What happens to your retirement plan if you leave the company? How much is your plan worth right now and how much can you expect it to grow between now and next year?

IRAs--If you have an IRA, would it be more beneficial to roll it over into a Roth IRA? Is your IRA earning you the best possible return? When can you roll it over to another fund?

Your retirement plan should be reviewed periodically to be sure it is performing the way you need it to for your retirement. The closer you get to retirement age, the more often you will want to review your plan.

Make sure any changes you make will benefit your end goals and carefully research every facet of your plan. Sometimes it is beneficial to run the numbers by a financial planner occasionally to be sure you have the best plan for your circumstances and goals.

You must have a certain amount of money management skills in order to fully maximize on the plan that you put into place. Here are a few suggestions on how to best manage your money