A common retirement planning pitfall for many people in and around Greenville, SC, is knowing what to invest in and why. At different stages in life, different types of investments are better options.
One of the most effective ways to determine the right mix of investments is to work with an experienced Registered Financial Consultant. Matt Dixon is one such professional in Greenville, SC, and he specializes in helping people of all ages and stages of life to plan for retirement.
A common mistake Matt Dixon sees in a self-managed type of retirement plan is a lack of diversification in the portfolio. There are several reasons why diversification is so critical for your long-term financial success.
Spread Out Your Investments
Typically, retirement plans include bonds, stocks, cash investments, and assets such as real estate or gold and silver. In creating a diverse portfolio, the different categories or classes of investments will have peaks and valleys in the actual value, but they will not rise and fall at the same time.
With a well-diversified and planned investment strategy, investors in Greenville, SC, are equipped to ride out any market downturns by having other types of investments.
Monitor the Portfolio
Matt Dixon recommends checking in on a regular basis to monitor your investments and to determine if the diversification needs to be adjusted. Moving to lower-risk investments the closer you get to retirement helps to build in protection for the investor.
In some cases, adding new types of investments may also be an option to consider. Working with a Registered Financial Consultant allows you to consider the options and weigh the risks in making any changes.
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