Investing in Your 50s, Part 2: Managing Risk and Rebalancing in Your TIAA or Fidelity 403(b)

In your 50s, your focus starts to shift from pure growth to preservation with purpose. You are closer to using the money, so the stakes feel higher. Managing risk does not mean avoiding growth. It means being intentional about the risks you take and making sure your TIAA or Fidelity 403(b) matches your comfort level and time horizon. 

What “Risk” Means Now in a TIAA or Fidelity 403(b) 

Risk is more than market dips. 

• Shortfall risk: Falling short of what you need in retirement 

• Inflation risk: Losing purchasing power over time 

• Sequence risk: Poor returns early in retirement, harming withdrawals 

• Over-caution risk: Being too conservative too early and limiting long-term growth 

A balanced approach aims to grow enough to fund future income while keeping volatility to a level you can live with. Here is a refresher on risk if you need it!

Why Rebalancing Matters in Your 50s with TIAA or Fidelity 

Markets move. Your target mix can drift. 

• If stocks outpaced bonds, your portfolio may now be riskier than you intended 

• If you dialed risk down too far, you may lag inflation and long-term needs 

• Rebalancing brings you back to target without guesswork 

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Set a cadence. Quarterly or annual rebalancing works for many investors. Automating it inside your University TIAA or Fidelity account can remove emotion from the process. 

Right-Sizing Your Mix in TIAA or Fidelity 

There is no single perfect allocation, but a few guidelines help: 

• Start with your timeline. Ten to fifteen years to retirement often calls for a blend of stocks for growth and bonds for stability 

• Match your sleep level. If volatility keeps you up at night, the mix is too aggressive for you 

• Diversify on purpose. Use broad U.S. and international stock funds plus core bonds. Limit concentrated bets 

• Keep costs in check. Favor low-cost index options at Fidelity and understand liquidity rules if you use TIAA annuity-style options 

  
  

Target date funds can be a simple, set-it-and-monitor option. A custom mix can work if you prefer more control. Either approach is fine if it fits your timeline and temperament. 

Practical Steps to Take This Month 

1. Log in to your University retirement portal and note your current allocations at TIAA and Fidelity 

2. Compare your current mix to your target based on age, risk tolerance, and retirement date 

3. Turn on or schedule rebalancing inside TIAA or Fidelity so you return to target on a set schedule 

4. Trim fees where you can by using low-cost index funds for core exposure 

5. Document your plan so you are not making changes during market stress 

   
   

   Now is a great time to check that your plans are up to date. Here is a handy guide to get started

   
   

The Bottom Line 

This stage is not about dramatic shifts. It is about gradual, deliberate adjustments that keep your TIAA or Fidelity 403(b) aligned with your goals. A clear target mix, a simple rebalancing routine, and attention to costs can help you stay on track without overreacting to headlines. 

In case you missed it 

Start from the beginning with Part 1: It Is Not Too Late, but It Is Time to Focus to learn how catch-up contributions, a right-sized risk mix, and a simple review routine can move you forward. Read Part 1 here.

Education only. Not investment, legal, or tax advice. Review your plan documents.