Welcome to my “Should I…” series! In this series, I will answer questions that I hear frequently from my clients. I would love to answer your questions too. So leave any questions you may have in the comments below and I will answer them in a future “Should I…” post.

Should I come out of the stock market when it fluctuates if I am 5 years from retirement?

At five years out from retirement, your portfolio should be diversified to provide both safety and growth. You will be withdrawing money from your retirement fund a little at a time over as many as 20 – 30 years. So, some of your funds should be in safe investments and readily available and some should remain in growth stocks so the money you won’t need to access for 20 years or more will still be working for you and taking advantage of market upswings. If your portfolio is well-structured and diversified, there is no need to panic when the market fluctuates – even if you are five years from retirement.

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