Diversifying Your Investment Portfolio for Retirement

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Investment Новости

Portfolio,Retirement,Diversification

As investors get older, their portfolios shift towards a more defensive mix, with a greater percentage allocated towards lower-volatility assets like bonds and gold. However, the allocation to growth assets does not reduce to zero. Diversifying across different asset classes is recommended to sustain oneself financially during retirement.

However, older investors may have an intention to use that capital sooner, to support them during retirement years. So you may not want to wait 10 years for the market to recover.

Every asset class has certain advantages and disadvantages. When you mix it up a bit, you get exposure to the benefits of each, and also protection from the risks of each. However, having a clear purpose for your investments can help provide clarity in designing an investment plan. When you know the end-goal, it’s easier to identify which options align with it.

 

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