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Featured Advisor

Kim Butler

Partners for Prosperity, Inc.

City:Mt. Enterprise

State: TX

I have 20+ years of handling alternative investments in cash, growth and income for clients nationwide.  I strive to help my clients with all things financial in every way possible over the phone and the web.  I own an alpaca farm which I enjoy working during my downtime.  I also enjoy gardening, writing and reading books.  I also train other advisors on Prosperity Economics.

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Asset Allocation of Key Importance to Investors Planning Retirement

Balancing risk tolerance and asset growth

Between the devastating economic downturn and heightened concerns, especially among younger investors, about the solvency of Social Security, planning is more essential than ever for those who want to live comfortably in retirement.  

As reported on MillionaireCorner.com, two-thirds of investors visit their retirement plan’s website at least once per month, an indication that they are taking a greater responsibility toward researching retirement planning and monitoring their retirement investments. As account balances increase, fund performance along with allocation concerns take on greater importance for investors.

The obvious goal of proper asset allocation is to provide investors with the mix of investments that yields the greatest long-term gains for a minimal amount of risk. This factor is among the most important to investors with investible assets of $500,000 and more in regards to their retirement planning, according to a new survey by the Spectrem Group. Just over 92 percent of  those surveyed say it is Very Important or Important to have this understanding of their portfolio. At just over 93 percent, having an understanding of how much is needed to retire comfortably was considered the most important to these investors with investible assets of $500,000 and more.

Having an understanding of asset allocations to achieve maximum gain with minimal risk was most important to male investors (50.6 percent) and investors with a net worth between $1 million and $5 million (not including primary residence). Of those surveyed, half of those who were retired also cited this factor as most important in terms of retirement planning.

But the need to balance risk tolerance with the need for asset growth is of key importance across wealth levels, gender and occupation.