When was the last time you checked the value of your retirement plan benefits?
How often do you review the performance of the funds you chose for the Stanford Retirement Plan? 

Did you answer, “More than six months ago,” or, “Never?”

Then now is the time to take control of your investments to ensure they are headed in the right direction. When you enrolled, you chose certain funds for your retirement plan contributions and, if you are like many employees, you promptly forgot about them.

Contributions automatically go into these funds, and life goes on—but your investment goals may not! You could be falling behind and not know it. The time to find out isn’t 10, 20 or 30 years from now; the time is today.

The Key to Long-term Success Is
By Rebalancing Your Investments

Fund performance is affected by many factors, such as market fluctuations, asset allocation, risk exposure, and so on. Over time, a fund’s portfolio can become too risky or too conservative for your investment goals.

Rebalancing your investments—shifting how and where your contributions are invested—can help you stay the course.

By regularly checking fund performance, you can make necessary adjustments and avoid an unpleasant surprise when you are ready to retire. Even if you have chosen the Vanguard Target Retirement Funds, which are based on age, you should check their performance and your goals regularly to determine if this is still the right option for you. Remember to take into account any investments and savings you have outside the Stanford Retirement Plan. Everything needs to work together to support your long-term goals.

Also consider where you are relative to retirement or the age when you want to start receiving your benefits. This will help you determine the level of risk you can afford. Generally, younger employees can choose investments with higher levels of risk because they have a longer time to ride the waves of market fluctuations and their ability to accumulate wealth through working is higher than older employees. The closer you are to the age when you will need the money in the plan may mean you take less risk since you have fewer years to work and accumulate the money you need.

Review Your Investment Options

Your retirement savings account statement shows how your money is invested. You can also check your account balances using the Stanford Retirement Manager (for Vanguard and Fidelity funds) or the TIAA-CREF website.

The Stanford Retirement Plan offers several options for investment. You can change how future contributions are invested and can transfer balances from one investment option to another. Stanford provides many other resources to help you, such as online presentations, workshops, and financial counseling.

Stanford takes longevity and retirement planning seriously, since funding a long life span is now the norm. Identifying the financial support you need when you retire is important, as is periodically checking the “health” of your investment funds to ensure they align with your life plans and goals. Making adjustments is easy once you’ve done your homework and regularly monitor your fund performance.

Educated Choices

This article was featured in the Spring 2014 issue of Educated Choices. Read the full publication>>

Tell Us

Did you find this article helpful? Share your feedback.