The market has just come through four strong years, a run that tends to spark two different reactions. Some start bracing for a downturn, convinced the good times are ending soon. Others get comfortable and assume the momentum will continue.

Both reactions miss a useful question: What should you do with the gains you’ve already made?

A strong market is a reason to celebrate. It also creates an opportunity to rebalance your portfolio and, in many cases, take some money off the table while you’re ahead.

Why Retirement Accounts are the Ideal Place to Rebalance

Imagine sitting at a blackjack table with a growing pile of chips. A smart player doesn’t leave every chip in play. As the wins pile up, they pull some aside. That way, if a bad hand comes along, they’ve already locked in part of their winnings.

While we don’t encourage gambling, investing works similarly, especially as you move closer to retirement. In your working years, you can afford to stay aggressive. Every paycheck brings a new contribution to your 401(k) or IRA, which naturally averages out the market’s ups and downs over time. If the market drops, you’re still buying in at a discount with your next contribution.

That safety net disappears once you retire. You’re no longer adding new money every two weeks to smooth things out. If the market drops 10% and you’re relying on that portfolio for income, there’s no incoming paycheck to soften the blow. This is why the years leading into and through retirement call for a different mindset than the years spent building wealth.

Benefits of Taking Some Chips off the Table

One practical advantage of rebalancing inside a 401(k) or IRA is taxes. Because these are qualified accounts, shifting from stocks into bonds or other conservative holdings doesn’t trigger capital gains taxes the way it might in a taxable brokerage account. A strong market gives you a natural window to make that shift efficiently.

This matters because retirement often comes with expenses that are easy to underestimate:

• Out-of-pocket healthcare costs, which tend to climb sharply after age 65
• Joint replacements, new medications, or other care needs that show up with age
• The possibility of assisted living down the road
• Family members who may need financial support

None of these costs come with a working paycheck to help absorb them. Having a cushion of protected, more conservative assets gives you flexibility when life sends an unexpected bill.

There’s a second benefit too. A pullback in the market, paired with a portfolio that already includes some bonds, gives you options. You can use that safer money to buy into the market while prices are down, something that’s much harder to do if you’re no longer earning an income to draw from.

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What Responsible Really Means

It’s worth reframing what this shift is really about. The goal is to make your portfolio responsible for where you are in life, which looks different than simply chasing an idea of “safe.”

Considering age only, a typical  allocation trajectory might look something like this:

• 30s and 40s: heavier in stocks, often 80% or more
• 50s and 60s: gradually shifting toward 60-70% stocks
• Retirement: often settling around 50-60% stocks

That last number depends heavily on what other fixed income you have coming in. Social Security functions somewhat like a fixed income asset, even if its long-term future isn’t guaranteed. Pensions, where they still exist, work similarly. If you’re a public employee with a state pension, that income stream can behave like a bond, paying out a set amount regardless of market conditions.

If your retirement savings are your only source of income beyond Social Security, being responsible with that money matters even more. And if you’re planning to leave money to heirs, it’s worth considering their situation too. A pension typically stops with you or your spouse, but an IRA or 401(k) can be passed down. If your heirs are young, inexperienced, or otherwise unable to manage a windfall, structuring that inheritance safely can be just as important as how you invest it now.

A Downturn is Part of the Pattern

Historically, the market posts a negative year roughly one out of every five years. Pullbacks are simply a normal part of how markets work, showing up on a fairly predictable schedule over time.

This is also, at its core, a basic buy low, sell high strategy. When the market has performed well, trimming back and locking in some of those gains is the disciplined move. It’s also the move that feels the hardest to make, because everything looks like it’s working. That emotional pull to stay fully invested when things are going well is exactly why so many people miss the window to rebalance until it’s too late. 

Where to Go From Here

Four good years in a row is worth celebrating, but it’s also worth acting on. Strong market performance gives you the chance to protect some of what you’ve earned, especially as you get closer to relying on that money for income rather than growth. 

If it’s been a while since you looked at your allocation or this positive run has left your portfolio more aggressive than you’d like, now is a good time to talk to an advisor about what a more responsible mix could look like for your situation.

At Premier Financial Group, we are our clients’ partners and greatest champions. We’ll sit down with you, look at your financial picture, and listen to your needs and goals to provide recommendations for managing your portfolio. Reach out to us to get started.

Most people spend their working years contributing what they can to a 401(k) and hope it’s enough. But the years right before retirement offer a few opportunities to close the gap. Two of the most important are the standard catch-up contribution and a newer, more powerful version called the super catch-up.

Both let people nearing retirement put away more money than younger savers. But the rules are specific, the window is narrow, and most never hear about the second one until it’s too late to use it. 

Here are the basics you should know about both.

The Basics: Catch-up vs. Super Catch-up

For years, the standard catch-up contribution has given savers age 50 and older the ability to put extra money into their retirement accounts each year on top of the normal contribution limit. It applies to both IRAs and employer-sponsored plans, and the amount is adjusted periodically, similar to how the standard contribution limit changes from year to year.

The super catch-up is different and more specific:

• It’s available during the calendar years in which you turn 60, 61, 62 or 63.
• It applies to most 401(k)s, 403(b)s, governmental 457(b)s, and the federal Thrift Savings Plan. A separate higher catch-up limit also applies to SIMPLE plans.
• For 2026, the higher catch-up limit is $11,250 instead of the standard $8,000 catch-up. Combined with the regular $24,500 contribution limit, an eligible saver could potentially contribute up to $35,750.
• There’s a related wrinkle for higher earners. Beginning in 2026, if your prior-year FICA wages from the employer sponsoring your plan exceeded $150,000, your catch-up contributions generally must be made on a Roth basis. That means those contributions are made after tax rather than reducing your taxable income today.

Once someone turns 64, the super catch-up is no longer available. The standard catch-up is still an option, but the higher limit only applies during those four years.

Where the Rule Came From

The super catch-up was created as part of the SECURE 2.0 Act, a broad retirement law enacted in 2022 that expanded retirement savings opportunities and updated many of the rules governing workplace retirement plans. Among its provisions was a higher catch-up limit for workers ages 60 through 63, giving people approaching retirement an additional opportunity to increase their savings.

Why the Window is Easy to Miss

Despite the size of the opportunity, it’s not something most people stumble across on their own. Unless an employer or plan administrator specifically flags it, the first time many people hear about the super catch-up is often close to, or even after, their eligible window has passed. It isn’t widely advertised, and because it applies to a relatively small slice of savers for a short span of time, it simply doesn’t make headlines the way other retirement rules do.

That’s why we bring it up proactively with clients in their late 50s, rather than waiting for them to ask. 

How to Decide if it’s Right for You

Qualifying for the super catch-up doesn’t automatically mean it’s the right move. A few questions are worth working through, ideally with your financial advisor:

Do you need this money for more immediate needs? The budget has to make sense first. Contributing $11,250 in a single year isn’t something to decide on the fly; it requires knowing where that money is coming from.

What’s the tax impact this year? Depending on your income and how the contribution is made, a super catch-up may reduce your taxable income today or be made on a Roth basis with after-tax dollars. Understanding the tax treatment is an important part of deciding whether it makes sense for you.

What’s the realistic time horizon for this money? Someone contributing at age 63 and retiring at 65 might only see two years of growth before they need to draw on it, unless they think of it with a longer-term outlook. Retirement isn’t a cliff where all savings get withdrawn at once. Money contributed in these years can still stay invested and compound for a decade or two, depending on how it’s eventually distributed.

Is this really about “catching up” or about maximizing savings? While the name implies playing catch-up, the strategy can also be useful for people who are on track but want to maximize their retirement savings during these years.

If you’re 50 or older but outside the 60-63 window, the standard catch-up may still provide an opportunity to save more for retirement.

Ask Before it’s Too Late

If you’re approaching your early 60s and want to learn more about the super catch-up, contact Premier Financial Group well before the window opens. Our knowledgeable financial advisors will help you understand all your options, develop a retirement strategy, and make sure you’re doing everything you can to build the financial future you want.

This content is not intended as personalized financial or tax advice. Consult a qualified financial advisor to discuss your specific situation.