Healthy Portfolio, Healthy Retirement

Everyone knows the more you're willing to risk, the more you're likely to gain. But there are no guarantees, especially when you're dealing with the stock market. So, how does one effectively plan for retirement while keeping their losses to a minimum?

Financial planners suggest diversifying your portfolio based on your risk tolerance. Start with mutual funds that are low in fees. It doesn't make sense to pay 7 or 8% in fees when the fund only offers a return of 5 or 6%. That means you're losing money the whole way through. Instead, look for funds that offer lower fees with higher potential on return.

Diversify your portfolio to provide a little cushion from market volatility. Have a nice mixture of large-, medium-, and small-cap stocks, bonds, and cash within the fund and remember there are a dozens of mutual funds to choose from. Sticking to just one is like eating the same thing for dinner every night. Variety is the spice of life!

If you need help with your portfolio seek out advice from an expert. Start with your local bank as their consultation services may be free. But, whatever you do, make sure it's the right decision for you!

Tell us how you've diversified your portfolio!