Diversification as a way to address investment risk

Risk management. One of the important components of any retirement plan strategy. One way to address this risk is through diversification.

Whether one is an active do-it-yourself’er or not, understanding the alternatives helps put things in perspective, and determine the appropriate route to take and why.

In this article the Principal Financial Group provides findings of a survey on the differences of asset allocation behavior of retirement plan asset allocations of do-it-yourself’ers and target-date fund investors.

As a plan participant, what other criteria would you research to determine your asset allocation as one of the components of your long term retirement plan strategy – investment fees, glide paths, and other alternatives?

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