Professor Charles D. Ellis of the Rebalance Investment Committee on changing jobs and retirement risk. More on changing jobs and smart retirement investing.
Rebalance is all about the same basic proposition: Nothing cute, nothing clever, very sensible. Some variety in choice, because some people are, in their interior, very cautious people. Some people are willing to live with more of the ups and downs in the market. So they ought to have different investment vehicles. So we’ve got several different investment vehicles, so you can choose what’s right for you. And then, given that choice, we can do the balancing in a very sensible way using ETFs and index funds for almost all of it.
Anyone leaving a job who has a balance in an individual retirement account as they leave should put it into a very sensible investment program with a highly regarded, widely admired, well-known investment organization and stay there. And just be sure not to take any of that money for your current use. Because you’re going to need it yourself years later. And you will be dependent entirely on what you do during your working years during your retirement years. Be careful. This is your life.