Determining an appropriate mix of investments and matching those choices to your retirement goals is a keystone of successful retirement planning. If your eyes glaze over when someone starts talking about asset classes, diversification and allocation, you’re not alone. Here’s a quick guide:
What Is an Asset Class?
One often-cited guideline for determining asset allocation when planning for retirement is that you should subtract your age from 100 to find the percentage of your investment portfolio that you should keep in stocks. For example, it suggests if you're 40, you should keep 60% of your portfolio in stocks.
Determining an appropriate mix of investments and matching those choices to your retirement goals is a keystone of successful retirement planning. If your eyes glaze over when someone starts talking about asset classes, diversification and allocation, you’re not alone. Here’s a quick guide:
What Is an Asset Class?
Perhaps you’ve lost a job, faced an illness or have been delt a family crisis that emptied out your emergency fund. What are your next steps?
You’re eyeing center-hall colonials in your neighborhood and dreaming about the garden you want to plant in the backyard and all the holiday celebrations you’ll host. You’ve saved toward this goal and think you’re ready to pull the trigger. But the real question is: How much house can I afford?
Or is it?
Social Security’s financial cliff is coming closer into view. Experts project that the fund that pays for government retirement benefits through FICA taxes will be depleted within the next 15 years.
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