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Instead, theyre worried about hitting a magic number and finally throwing in the towel.
Looking back, there can be regret since a failure to diversify over decades can have many consequences.
Are you in a similar situation?
Its exactly where Frank H. has found himself now that hes several years into retirement.
Constant Worry About Market Fluctuations
Market volatility is normal.
Within these blanket movements, certain industries have wider swings.
For example, the technology sector could drop 20% due to a bad earnings call from Apple.
At the same time, theconsumer staples sectormight only drop 3%.
Inconsistent Returns
By now, you should understand that the market has a mind of its own.
This created a lasting impact on my portfolio.
I had to sell more assets than normal at low points to sustain my lifestyle.
When the market did rebound,my asset basewas less because of the additional funds I took out.
Inconsistent returns and volatility in distributions can lead to running out of retirement funds.
For example, I have a chunk of my retirement in a taxable brokerage account.
The Bottom Line
Is your portfolio diversified?
Theres no set-in-stone way to diversify a portfolio; however, there aresome tips and tricksto keep in mind.
First, you want to have your funds across different investment types.
This could be stocks, bonds, real estate, cash, annuities, or life insurance.
If youre still confused about how to get started with portfolio diversification, reach out to a financial planner.
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