Are you saving and watching your money grow in investment accounts that are tied to the stock market, and only the stock market? It’s a great asset class that can offer higher chances of getting good returns and dividends, and you can diversify within the market, but if you’re not investing in other asset classes, your savings is in one jar and not truly diversified.
Inherent vulnerabilities and risks to having all of your assets tied to the stock market include:
- It is volatile; returns are uncertain and not guaranteed.
- If the market is down when a withdrawal is needed, you’re essentially taking a loss on top of a loss.
- It is a depleting asset; when it’s gone, it’s gone.
- It provides no supplemental benefits, like funds designated for long term care expenses.
Being truly diversified gives you multiple jars of savings, which can offer some layers of protection. If one jar hits the ground, you have other jars that are still intact and can float you while giving the other jar a chance to recover.
It’s good to have options and a back-up plan. Just in case 2008 happens again, give yourself another jar of money to pull from so that you don’t have to come out of retirement.
Contact us today to learn more about how we can help you create an expertly crafted and creatively diversified savings-jars strategy. www.nashionalfinancial.com