Do you have all of your “eggs” in one basket?
You already know the importance of eating a variety of foods to achieve a well-balanced, healthy diet. One food group alone may not provide adequate nutrition, but consuming a little from each group provides a variety of dietary benefits. The same can be said when it comes to your retirement portfolio.
Diversifying your retirement portfolio into a variety of products and investments can provide you with benefits that one method alone may not be able to provide.
Some diversification questions to consider:
1. What is your appetite for risk? Your specific retirement needs and how you prefer to manage risk will determine what your financial professional will recommend.
2. Do you have a long-term vision? If you’re looking for instant returns, diversifying won’t help. Diversification is not meant to boost performance, but rather to help provide the potential to protect your nest egg.
3. How will you keep things in balance? It’s important to take a regular look at your portfolio to rebalance and re-assess your investments. Past performance does not guarantee future results, so just because it was working for you six months ago doesn’t mean that it’s the best choice for today.
An annuity may help diversify your portfolio and offer additional benefits for your retirement, such as guaranteed income and a death benefit for your loved ones.