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Investing Specialists

6 Ways to Simplify Your Retirement Portfolio Plan

Come up with a streamlined strategy, then skinny down the number of accounts and holdings that you have.

I often speak to groups of retired or soon-to-retire people, and it's clear that investing is a passion for many of them. They've been studying investing and the markets for many years, homed in on a philosophy that makes sense to them, and finally have time to give their portfolios their full attention.

The trouble is, many such investors reach that life stage with portfolios and/or strategies that are far too complicated. They frequently have too many distinct accounts, separate holdings--or both. They may also be employing strategies that require too much baby-sitting on an ongoing basis. Any time I hear a retiree say "I start by looking at the Dow Jones Industrial Average's 20-day moving average" or "I don’t have time to work. I'm too busy managing my portfolio," that's a red flag that the strategy is more complicated than it needs to be. Even if investing is an avocation, as it is for many folks, too complicated strategies and portfolios can be readily derailed if, due to health or other considerations, the retiree is unable to put in the requisite amount of time to keep the whole thing up and running.

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