However, there are decisions you can make to reduce the chance you might run out of money. One solution that may help is to make sure you are putting more away so you can have more in the end. Another thing to consider is looking at what assets could give more cash flow throughout your life and in your retirement years….
Of course, you shouldn’t have all your money in one single asset class or product. It is important to diversify. Are you truly diversified?
You see many people “diversify” across asset classes, which is smart. Yet when the professionals at The Free Group ask or meet with people and see if they have diversified for future tax increases or market volatility, most people are behind. For example, many people are putting a decent amount of money into a qualified plan and that is definitely helping save on taxes today. A wise decision for most. However, it may not make sense for every dollar.
Would it make sense for a portion of your money to diversify it from future taxes and the potential they might go up? Or how about protecting a portion of your money from market volatility? These are wise directions to go. If things go down a portion of your money is locked in, yet you can still grow it a decent growth rate over time.
Or how about diversifying your assets with some that will give you a cash flow you can count on in retirement? This is another path rather than only focusing on assets that accumulate but might not have a feature of lifetime cash flow.
That’s why most people should look at diversifying not only across different asset classes, but also truly diversify for future taxes and market volatility.
If you feel that learning more about this is something that would benefit you, call or contact the financial professionals at The Free Group.