QUESTION:

investment %'s

I heard today that 40% of your investment portfolio should be in foreign investments. Is this true?
asked by megan griffin, 1/3/2007
Categories: Retirement Investing, Early Retirement
ANSWERS:
Answered by: SilverSurfer, 01/28/07
Overall Rating: Be the first to rate it.

IMHO (In My Humble Opinion) it depends on several things including
- how close you are to retirement
- how long you expect to live in retirement
- your tolerance for risk

The basic rule of thumb is - as you get closer to retirement you should shift your retirement portfolio to "less risky" investments - so that there is less volatility in your funds.

It used to be that meant buying bonds in US companies - however in today's world "less risky" may equal more diversified...also people are living much longer these days so a bigger part of your portfolio may need to stay in riskier assets, which in theory should provide a greater return over time...

Bottom line - talk to a trusted, fee based certified financial advisor.

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