Real Deal Retirement » Blog Archive » How Can I Simplify My Retirement Investments?
So if monitoring the performance of your retirement portfolio and periodically rebalancing your holdings to maintain the right balance between risk and return interferes with your ability to live retirement as you please, then by all means you should take steps to simplify your investing strategy.
Fortunately there are several relatively easy ways you can do just that. One would be to simply invest your IRA money in a target-date retirement fund. The beauty of doing that you get not just a fund, but a fully diversified portfolio that's appropriate for various stages of retirement.
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If you're not comfortable picking a target-date or life-cycle fund, another possibility is to go with a robo-advisor, or a company that employs algorithms to create portfolios, typically consisting of exchange traded funds (ETFs), based on your financial goals and tolerance for risk. After creating your portfolio, robos will automatically rebalance your holdings and, in some cases, provide tax-loss harvesting to enhance the after-tax returns for savings invested in taxable accounts.
Be aware, though, that many robos deal with their clients primarily, if not exclusively, online, although some, including Betterment, Schwab Intelligent Advisory and Vanguard Personal Advisor Services provide access to humans and may also be able to help create a plan for withdrawing money from retirement accounts.
There are plenty of choice that can help you simplify investing, although you'll definitely need to take some time to assess the different options and come up with the one that makes the most sense for you. But once you no longer have that 10-fund portfolio competing for your attention, you should be able to better focus on what really matters at this stage of life, enjoying your time in retirement.