The problem is that most advisors still use rudimentary personality profiles to help clients determine
the right level of risk.
While it's true that your retirement plan may offer several distinct investment choices, you won't likely achieve
the right level of risk and diversification by simply dividing your money across all of them.
It's harder to make sure that you are saving enough for retirement and that your investment mix has
the right level of risk for your age and life if you have to keep track of several accounts.
Ideally, you'll find a column that combines
the right level of risk for you.
While it's true that your retirement plan may offer several distinct investment choices, you won't likely achieve
the right level of risk and diversification by simply dividing your money across all of them.
Find
the right level of risk.
Investing is mostly about
the right level of risk, not what return you hope to make.
It's harder to make sure that you are saving enough for retirement and that your investment mix has
the right level of risk for your age and life if you have to keep track of several accounts.
I absolutely agree with the assertion that the most fundamentally important assessment each investor must make is determining
the right level of risk.
You need to choose
the right level of risk!
As I emphasized, «You need to choose
the right level of risk!