Retiring in 2029? 3 Key Investing Moves You Should Make Today.

If you’re aiming to retire in 2029, you may be starting to finalize certain plans and get excited about that next stage of life. And the good news is that with three years to go, you have a prime opportunity to make some strategic investment moves that could help you retire more securely, like these.

1. Review your asset allocation

When you’re in the process of building up your IRA or 401(k) balance, investing heavily in stocks tends to make sense. But when you’re nearing retirement, it’s important to scale back on stocks so you’re not overly exposed to volatility.

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Now’s the time to look at your asset mix and make changes as needed. You don’t need to dump your stocks completely — and you shouldn’t, since you need your money to keep growing in retirement. But reducing exposure to stocks is key if you’ll be tapping your portfolio for income soon enough.

2. Build a cash cushion

Since you should ideally have some of your assets in the stock market during retirement, your portfolio could lose value on paper during a downturn. When your portfolio sinks but you’re not tapping it, it’s an annoyance. When you’re retired and actively taking withdrawals, it’s a threat.

That’s why it’s important to build a cash cushion. Now’s the time to capitalize on investment gains and put enough money into cash to cover one to three years of living expenses (or more, if that’s what you need to sleep at night). Having cash allows you to leave your assets untouched during a downturn so you don’t have to lock in losses.

3. Choose assets that provide steady income

In retirement, you’ll want to own assets that pay you on a regular basis. Now’s the time to start seeking some out, whether it’s dividend stocks and ETFs or real estate investment trusts.

Dividend stocks also tend to be less volatile than growth stocks, which is a good thing in retirement when you’re trying to reduce risk. You can look at dividend ETFs that filter holdings specifically to reduce volatility if you want the income without the wild swings.

Retirement may still be a few years out if you’re planning a workforce exit in 2029. But now’s the time to make sure your investments are set up for success. By reviewing your allocation, moving funds into cash, and focusing on income-generating assets, you can set yourself up for a financially sound retirement once you’re ready to kick things off.

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