Diversification Is Key

It all depends on the amount of risk you’re willing to live with and the amount of investment income you need to live on in retirement. For example, if you have many years left to let your money build up before you retire, and if you’re willing to take a chance, you may want to put a bigger percentage of your money in stocks or other investments that offer relatively high rewards at higher levels of risk. On the other hand, if you expect to retire in a few years and you don’t want to risk losing any savings, you’ll probably want to keep a good portion of your money in safer investments like bond funds. Your money won’t grow as fast as it would if you put everything into stock funds, but you don’t want to risk your hard-earned nest egg when you’re so close to your goal. The other factor to consider is how much risk you can stomach. Remember, small company stocks tend to be riskier on average than blue-chip stocks. Finding Good Advice Many people discuss their investment choices with a financial