Here are important considerations about your investments as you approach retirement:

• Your risk tolerance may lessen as you approach retirement age. Moving a portion of your assets to more conservative investments may help reduce losses during stock market downturns and may provide relatively less volatile returns.
• As your focus shifts from accumulating money to preserving the money you've saved, you may find that your current asset allocation is too aggressive once you retire.
• Longevity needs to be factored in because you could be retired for 30 years or more. You'll want an investment plan that includes growth components to help keep your assets at a level that will last throughout your retirement.
• Over a long retirement, even a relatively low inflation rate will take a significant toll on the buying power of your savings.
• You also may want to consider purchasing investments that provide lifetime income. Annuities, for example, offer an investment option that provides steady cash flow.