Retirement is a hot topic these days, as boomers begin leaving the workforce and pension values plummet.

Savvy investors need to pay close attention to their retirement portfolio in order to strike a balance between running out of money or skimping unnecessarily in retirement years.

Experts recommend these three principles to hedge your bets and be as well-prepared as possible.

  1. Consider longevity insurance: As life expenctancies rise, longevity insurance is one way to guarantee that you’ll have money set aside if you do indeed make it to your 90s. Particularly if you buy early (in your 40s or 50s), one inexpensive lump sum can pay great dividends when you need it most.
  2. Evaluate the annuity market: As with any financial decision, it’s important to do your homework and decide what level of risk is comfortable for you. But for those without a pension plan, investing in an annuity can be a wise decision that will secure your future. 
  3. Watch your asset allocation:You might take the oft-quoted 4 percent rule as a starting point, but be sure to evaluate your portfolio often to ensure you’re balancing the right amount of risk and security.

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