A Gold IRA can reduce
the volatility of your retirement portfolio.
Not exact matches
A Gold IRA (also known as a Precious Metals IRA) can reduce the
volatility of your overall
retirement / investment
portfolio.
Benartzi's research focuses on how
retirement plans can increase effectiveness and Markowitz, dubbed, «The Father
of Modern
Portfolio Theory» has written about the importance
of crafting an asset allocation that can help achieve gains while protecting investors from market
volatility.
For instance if your
retirement relies solely on a stock
portfolio, then market
volatility likely is much more
of a risk than a situation where your
retirement will be supported by income from several different vehicles with varying degrees
of correlation to market ups and downs.
Given the pronounced investment orientation
of the group, one might think that «market
volatility» might top the list
of retirement portfolio risks that are on the minds
of older clients.
But only 16 percent
of the advisors said their 50 - and 60 - year - old clients believe
volatility is the biggest risk to their
retirement portfolio.
Asset allocation affects a number
of retirement plan factors including your
portfolio's exposure to a market crash, your long term expected
portfolio return and
volatility, and your sustainable withdrawal rate (and sequence
of return risk).
This approach «automatically calibrates the amount
of asset
volatility, or
portfolio risk that a member should be exposed to», given his current age and his expected
retirement age, it said.
Depending on your tolerance for
volatility, mutual funds can allow your long - term
retirement portfolios to contain a wide array
of stocks in various securities worldwide.