Get the latest Retirement investing new headlines, videos, commentary and Morningstar reports. Financial planner Mark Balasa and Morningstar's Christine Benz and David Blanchett tackled viewers' most pressing retirement questions, from determining savings rates and income needs to planning for Social Security and maximizing retirement accounts.<br/><br/><b>[0:01:34]</b> ... to Morningstar, David was director of consulting and investment research for the <b>retirement</b> <b>plan</b> consulting group at Unified Trust Company. So, thank you guys, all for being here. Lots of questions from readers again. Please keep those questions coming in as we go through the panel today. I want to start off for pre-<b>retirees</b>, probably one of the biggest questions that folks have as they are approaching those retirement years: "Have I saved enough?" So a ... <br/><b>[0:04:52]</b> ... are doing with your money--you will need to replace more of your pre-<b>retirement</b> <b>income</b> when you are actually retired. But talking to a lot of our users, they're writing to me and saying, "I've been living ... <br/><b>[0:08:25]</b> ... sizeable portion of investment portfolios because of the income stream generated for <b>retirees</b>. In light of the fact that interest rates on high-quality bonds are at all-time lows, should <b>retirees</b> stay put with high-quality bonds, which will inevitably show losses when interest rates rise?" This is a huge concern; folks should be ... <br/><b>[0:10:26]</b> ... we are now over someone's 30-year lifespan, is that maybe something that <b>retirees</b> should look at more closely than they historically have because of the concern? Again you are trying to get a return in ... <br/> Ahead of Portfolio Makeover Week, Morningstar's Christine Benz offers tips to alleviate common concerns over retirement readiness, inflation, allocation, and more.<br/><br/><b>[0:00:45]</b> ... out and see whether you are on track to actually have enough <b>during</b> <b>retirement</b>. Stipp: And you say that one of the things that a lot of folks will do is take a look at the raw number, and it will seem just too low. But that's really just part of the story how much you have. It also depends on a lot of other factors. Benz: It really does, and it depends mainly on your anticipated spending <b>during</b> <b>retirement</b>. So, for example, there was someone who wrote into me, and this person had roughly $320,000 in assets, getting ready to retire. ... <br/><b>[0:01:50]</b> ... are on track once you're factoring in all of your income sources <b>during</b> <b>retirement</b>. One tool I often refer people too is the T. Rowe Price <b>Retirement</b> <b>Income</b> Calculator. Or I think this is a great [opportunity] to see a fee-only advisor to do that check for you, even if ... <br/><b>[0:04:32]</b> ... portfolio makeover requests. Other people have the opposite predicament. They are coming <b>close</b> <b>to</b> <b>retirement</b> and suspect that they have way too much in stocks, given where they are at that life stage, and yet they are ... <br/><b>[0:06:27]</b> ... to six months' worth of living expenses. If you're someone who is <b>close</b> <b>to</b> <b>retirement</b>, what I usually recommend when I talk about that bucket strategy for <b>in</b><b>-</b><b>retirement</b> <b>portfolio</b> planning is thinking about one to two years' worth of cash for living expenses in true cash reserves. So, think about certificates of deposit and money market funds. It is dead money as you say. It's in the red actually once you factor in inflation, but the idea is that this is money that you're keeping stable to meet your near-term living expenses. Stipp: Speaking of inflation, that's an important part of making sure that your allocation is correct, especially as you're <b>nearing</b> <b>retirement</b>, that inflation protection piece? Benz: Absolutely. So one thing we notice when we look at those Ibbotson Morningstar Lifetime Allocation Indexes is that the percent of explicit inflation protection increases quite a bit as someone gets <b>close</b> <b>to</b> <b>retirement</b>. So, when you're thinking about your <b>retirement</b> <b>portfolio</b>, you want to think about certainly having stocks. That's a great way to out-leg inflation over time, but you also want to ... <br/> Director of personal finance Christine Benz will help you check your true exposures and stress-test your holdings in session 2 of Morningstar's 2012 Midyear Financial Checkup.<br/><br/><b>[0:04:16]</b> ... have at retirement or any monthly income that you expect to have <b>during</b> <b>retirement</b>. So Asset Allocator, I think is a great one-stop tool that does, in fact, harness your individual portfolio holdings, but investors can ... <br/><b>[0:04:50]</b> ... on whether your current savings plan and portfolio are on track. The <b>Retirement</b> <b>Income</b> Planner I know is one that a lot of our Morningstar.com users have told me that they have gotten a lot out of. It's definitely a good tool for people who are closing in on retirement and have some visibility toward what their <b>in</b><b>-</b><b>retirement</b> expenses will look like. T. Rowe Price <b>Retirement</b> <b>Income</b> Calculator is another terrific tool. I would say regardless of what tool you use, just make sure that it's as holistic as it can be possibly be. So ideally any tool you use would factor in the fact that some of your assets will take a haircut when you retire because you'll actually pay taxes on those assets. So if you have traditional 401(k) or <b>IRA</b> assets, for example. Another factor that should go into the pot would be inflation. So you'd want to make sure that any ... <br/><b>[0:07:22]</b> ... to this idea. It's so important and such an important part of <b>retirement</b> <b>planning</b>, but one rule of thumb that is often thrown out there as a sustainable withdrawal rate for retirement is that 4% rate. ... <br/><b>[0:08:13]</b> ... the extent that you possibly can. So I know a lot of <b>retirees</b> really prize the idea of a steady income stream; I know I do in my working years. But to the extent that ... <br/> Jan. 24-28: Our top income, allocation, risk-management, and investment ideas for retirees. Investor Solutions founder Frank Armstrong thinks retirees need ten years worth of retirement income saved up as a buffer against economic downturns.<br/><br/><b>[0:00:13]</b> ... the conference has been asset allocation, and in particular, asset allocation for <b>retiree</b> <b>portfolios</b>. Here to share his insights is Frank Armstrong. Frank is the President and Founder of Investor Solutions. He is also the author of four books. Frank, thanks for joining us. Frank Armstrong : My pleasure. Benz : So, let's talk about retiree asset allocation. How <b>retirees</b> can think about transitioning their portfolios, what changes they should make for their asset allocation as they get <b>close</b> <b>to</b> <b>retirement</b> and needing to put their hands on their money? Armstrong : Okay. First of all, I think, you want to be positioned ... <br/><b>[0:01:30]</b> ... withstand that. So, I would recommend that they have 10 years of <b>retirement</b> <b>income</b> salted away in very short-term fixed income investments, so that if the market goes down, we can continue to write those checks ... <br/><b>[0:03:10]</b> ... of my client's wealth. So, for every dollar of income you need <b>during</b> <b>retirement</b>, you need $25 of capital to support that. It's very capital intensive enterprise. Benz : So, let's talk about some ways that ... <br/> Morningstar's Christine Benz discusses retirement portfolio planning strategies and pitfalls with T. Rowe Price senior financial planner Christine Fahlund, noted advisor Mark Balasa of wealth management firm Balasa Dinverno Foltz, and Morningstar Investment Services' Jeff Ptak.<br/><br/><b>[0:00:21]</b> ... who are going to help us tackle some of the challenges facing <b>retirees</b>. And also post some practical solutions. Here joining us today is mark -- markets principal and co-founder of the firm. Blasted didn't ... <br/><b>[0:01:11]</b> ... and manages Morningstar managed portfolios. A suite of products that includes a <b>retirement</b> <b>income</b> series of portfolios Jeff thanks for being here my pleasure. So we have a lot of ground to tackle today we're going to talk about navigating. Retirement given the current fixed income environments and what to do with your bond portfolio. We'll also talk about setting the right asset allocation retirement. And I'm hoping it will also have time to discuss some peripheral. <b>Retirement</b> <b>income</b> strategies such as maximizing Social Security. As well as the role of annuities in <b>retiree</b> <b>portfolios</b>. Toward the end of this session we will take some questions both from our online audience and from our live. Audience here ... <br/><b>[0:02:14]</b> ... a retirement six months ago in July 2010. As a fairly recent <b>retirees</b>. One of my interest of course is concerned with fixed income and it's no secret we've had pending rising rates going on. ... <br/><b>[0:02:49]</b> ... this is -- a question that's top of mind with so many <b>retirees</b> and excuse me and pre <b>retirees</b> today. Mark let's talk about the practitioners perspective on this question I'm sure you're getting satellite he told me you're getting a ... <br/> *** enter disclosure *** Morningstar's Christine Benz shows you how to uncover portfolio strengths and weaknesses, determine the impact of market movements on your asset mix, and more.<br/><br/><b>[0:03:42]</b> ... colleague, David Blanchett, and this is for people who are getting very <b>close</b> <b>to</b> <b>retirement</b>. So, they are still in accumulation mode, but they are kind of wondering will: "We have enough? Do we have enough?" So, ... <br/><b>[0:04:37]</b> ... have mentioned a couple that I like right here. T. Rowe Price <b>Retirement</b> <b>Income</b> Calculator is a tool that I've often liked because it's robust and it is comprehensive. Fidelity also has some good tools as ... <br/><b>[0:07:18]</b> ... in a taxable account. The process is a little bit different for <b>retirees</b> in terms of this overall wellness-check idea. And I would say for <b>retirees</b>, they want to focus on one key metric, and that's their withdrawal rate. How much are they taking out of their portfolios ... <br/><b>[0:09:31]</b> ... rates are so low currently. So, the raw materials for robust returns <b>during</b> <b>retirement</b> simply aren't what they once were. They suggested that actually a 3% rule of thumb is perhaps more in order, and I ... <br/> Investor Solutions' founder Frank Armstrong discusses solutions to undersaving, too much focus on current income, and too little attention to inflation.<br/><br/><b>[0:00:13]</b> ... the battle. Here to talk about some of the big pitfalls in <b>retirement</b> <b>planning</b> is Frank Armstrong. Frank is the President and Founder of Investor Solutions LLC, a registered investment advisor based in Florida. Frank, thanks ... <br/><b>[0:00:56]</b> ... : So what's a strategy for someone like that who is getting <b>close</b> <b>to</b> <b>retirement</b> and who has under-saved? What levers can they pull to get themselves back on track? Armstrong : Well, maybe one of the ... <br/><b>[0:01:29]</b> ... can make. So it can have a big impact on your total <b>retirement</b> <b>income</b>. Then, of course, you know you can downsize, but that's pretty painful for most people. Benz : So, cut your expenses... Armstrong ... <br/><b>[0:02:06]</b> ... would indicate that's a pretty good idea, but unfortunately, a lot of <b>retirees</b> think that 8% or 10% is sustainable because they have this idea that the stock market has generated, say, 10% since 1926. Well, it has, but with a lot of volatility. And when the volatility bites you, your portfolio can self-liquidate in very short order. Benz : So, for a lot of <b>retirees</b>, too, it's kind of luck of the draw when they retire. If they happen to retire when the markets at a relatively ... <br/> Morningstar's Christine Benz helps investors assess allocations, check their progress, target holes and overlap, and upgrade their holdings.