How to Modify Investment Plans

There are many different reasons to consider modifying an investment plan. A person who is starting a family may want to modify a plan to include a larger monthly contribution amount as a way to save for college. Changing the allocation of existing investment holdings is another reason to modify a plan.

• Contact the human resources manager where you work to get the right modification form for your investment plan. If you are increasing the amount of your contribution, find the section on the form and complete it. You can also modify your plan when you want to move some of your funds to a different type of investment. Review your investment options before you make the change.


• Check your investment allocation to help you modify your plan. For example, if you have 70 percent in mutual funds and 30 percent in bonds, change the percentages based on your current economic outlook. Do some research to help you determine the right allocation for your financial situation.


• Decide where to invest your funds. Most plans allow you to choose investments based on your risk tolerance. For example, if you have mutual funds in your plan, decide which sectors to invest in. Move your funds into different sectors to spread the risk instead of only using a large index mutual fund.


• Change your investment plan when you need to access the funds in your account. For example, many plans allow you to withdraw funds for purchasing a house. You can also reduce your contribution amount if you need to save money for other expenses you need to pay for.


• Modify your investment plan as you near retirement age. Many people choose to reduce their exposure to riskier investments when they are closing in on retirement. Use an allocation calculator to help you determine the best way to modify your plan.