In the Video above, Scott Farnsworth, Central Florida's Tax-Free Retirement Expert answers a frequently asked question: Should I diversify my retirement savings?
"Diversification is one of the key, basic ingredients of a successful investment strategy. We think about diversification in terms of between stocks and interest spearing investments, but most people don't think about diversifying between taxable vehicles and non-taxable vehicles.
I believe that we should look at the tax-ability of our retirement plans and make sure we have a healthy mix of tax-free, retirement vehicles in our portfolio. I think we should also think about how do we protect our portfolio from market losses. The stock market is volatile. How many more stock market crashes will we see during our lifetimes? Diversifying away from the stock market, and into indexing or other safe investment modes, is a key to a successful retirement."
Should I diversify my retirement savings?