Older investors

If retirement is soon or now

If you are one of the lucky members of this age group, you have both a traditional pension and a 401(k), plus you diligently saved for retirement and put your money in a reasonable mix of stocks and bonds. That, plus your Social Security benefits, might still be enough to provide the kind of retirement you envision for yourself.

The best way to know is to add up your probable retirement expenses (including the fun stuff, such as travel) and then compare that with your probable retirement income. Assume you can withdraw no more than about 4 percent of your investment portfolio each year without running out of money.

If it turns out that your retirement expenses are likely to be greater than your income, you have two basic options: trim your expenses or plan to retire later (and keep saving and investing).

Even at this stage, you should still have some stock investments, for money you hope to spend in your later retirement years. But now that your retirement is upon you, it has switched from being a long-term goal to a short-term one. That generally means moving money into even more conservative vehicles, such as mutual funds geared toward preserving assets and paying income. Bond and money-market funds are good options, as are bank CDs. Immediate annuities sold by insurance companies can provide a set income for as long as you live in return for a lump-sum payment, but they won't leave any money for your heirs.

No matter how old you are, it's important to create a sensible retirement plan and try to stick with it for your entire working life. Make steady contributions to those retirement funds throughout your working years and you'll increase the chances that you'll enjoy a comfortable, financially secure, retirement.