Chances are if you have started to plan for your retirement and you have seen a financial advisor, you have an investment portfolio set up and you are monitoring that portfolio constantly to see if you can improve your investments. As with any investment portfolio, you have to make sure that your retirement portfolio is diverse with assets in as many different areas as possible. This makes it more difficult to lose any significant portion of it in market crashes or amidst price dips.
When considering where to put your assets, think about your age, your risk tolerance, and whether or not you need your investments to produce income to live upon. Your age matters because if you’re close to retirement age, you will invest differently than if you’re still twenty or thirty years away. Generally, financial planners tell people to invest aggressively and take on risk when they’re young and play it more safely when they are older. Assess your risk tolerance at all points of time. Make sure that, if you do take more risks, possible losses can be recuperated soon afterward. If you need your investments for your income, you will probably take fewer risks and allow for slower returns on investment.
As a professional accountant for the company Moeller Manufacturing in Wixom, Michigan, Gary Kapanowski knows the benefits of creating a diverse portfolio and monitoring that portfolio as much as possible. Kapanowski tries to provide expertise to those struggling with retirement as much as he can.
Tagged: Gary Kapanowski