Tuesday, March 22, 2005

To put it more simply...

One of the few concepts that I have been able to pick up from my efforts to understand how to select my retirement portfolio is diversify, diversify, diversify. Don't put too much of your retirement funds into one type of investment. Don't put it all into safe, low-risk investments like bond funds, don't put it all into large cap or small cap, don't put it all into high risk investments or a single sector -- spread it around, to spread the risk. Well, isn't that basically what Social Security does for us? I already have my 401(k) (actually 403b) account, where I invest primarily in medium- to high-risk funds as I'm 30 years from retirement. Social security is my "tortoise" option -- it's slow, it's plodding, it'll never make me rich, but it's dependable. (In case you're going to argue that it's less dependable because of the future social security deficit problems, I think the idea that the government of the United States of America will renege on its commitment to its senior citizens is preposterous. We may incur massive debts doing it, but the U.S. will not suddenly stop paying out social security -- I'm convinced of it.)

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?