Don’t Go From Good To Bad

Are you taking too much risk with your retirement money?

Many people come to us with questions about investment planning. One question we frequently hear: Is it possible to earn a decent rate of return without putting too much of my retirement savings at risk?

Your retirement plan should include opportunity for growth while also addressing potential risk in your investments. The potential risk lurking in your portfolio changes over time, due to age, life events and shifting market conditions.

We see two common risks in retirement plans. The first is long-term bonds, which are usually chosen as a vehicle for generating income. Bonds are riskier when interest rates are low, because bond values decrease when interest rates rise.

The second risk we commonly see is overexposure to stocks. This can happen when you haven’t rebalanced or reallocated the investments within your portfolio. We recommend reviewing and reallocating investments at least once a year or as needed to address shifting markets and changes to your financial goals and needs. Your financial advisor can help you make sure you’re allocated correctly and find ways to help you reduce risk in your portfolio. The goal should be to limit your downside and creating opportunity for the upside as much as possible.

Discover the better side of retirement planning.

Could you be taking too much risk in your portfolio? At Carlson Financial, we help answer all your retirement questions. Call us today at 844-CARLSON or CLICK HERE to schedule your complimentary review.

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