3 Tips to Diversifying Your Retirement Savings

Your retirement savings is one of the most important things that you have. In order to maintain your savings, you should look for ways to diversify your portfolio. Here are a few tips on diversifying your retirement savings.

1. Consider Mutual Funds

Using your retirement savings to purchase mutual fund shares can be a good way to diversify your account. A mutual fund takes money from thousands or millions of different investors and uses it to buy many different securities. This provides you with a very diversified portfolio that can withstand problems in the market.

2. Target-Date Fund

Another type of investment is the target-date fund. This is commonly used with 401k accounts. With this type of investment, you will choose a target date for retirement. The investments this fund makes will automatically change as you get closer and closer to retirement. It will go from a portfolio with some risk to a more conservative portfolio over time.

3. Market Neutral Funds

Another good way to diversify your funds is with a market neutral fund. This type of fund seeks to provide returns independent of anything that takes place in the stock market. They invest in things like real estate, futures, foreign currencies and commodities in order to provide a diversified portfolio for their investors.

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