It’s now spring and that means the weather can’t make up its mind. Depending on where you live, you might experience anything from blizzards to floods. One day is clear with bright blue skies, and the next day is a winter flashback. The weather pattern is volatile and seems to change almost daily. Planning for travel or any type of outdoor events can be risky business this time of year. It doesn’t mean you have to sit indoors until summer, but it does mean being prepared and having a plan is probably not a bad idea. So, what can you do to help make sure that you don’t get caught in a retirement storm?

One of the best ways to help achieve your retirement goals is to diversify and monitor your future income. The risk management technique of mixing a wide variety of investments within a portfolio is called diversification. Generally speaking, the purpose of a portfolio constructed in this manner is to give you a mix or a variety of investments to get as much of the upside as possible, without putting too much at risk. Studies show that a well-diversified portfolio of 25 to 30 stocks yields the most cost-effective level of risk reduction. Additionally, diversification benefits can be increased by investing in foreign securities as they aren’t highly correlated with domestic investments. If there is an economic downturn in the US economy, Japan’s economy is not affected in the same way. This gives an investor a small cushion of protection against losses.

So, how will the concept of diversification manifest itself within your portfolio? How much retirement income will you need to sustain your lifestyle? Imagine, it is your first day of retirement. You’re no longer working and earning a steady paycheck. Are you confident today, that you will be able to live the lifestyle you desire in retirement?

While we can’t control Mother Nature, we can monitor her behavior. For instance, you might rethink your plans on having that picnic if you knew torrential rains and dangerous lightning were headed your way. The point is that being prepared can be very useful, and in certain situations, life-saving. The same holds true for financial planning and in particular, retirement planning. It’s about being prepared and having a plan that avoids putting you in risky situations. A qualified financial professional can be your trusted source for retirement planning information. There are many financial products and options available to choose from, so it may be a good idea to visit with a financial advisor to discuss which options are best for you. CLICK HERE to request your complimentary, no obligation financial review and we can help answer your retirement planning questions, while making sure you’re on-track for a successful retirement. In the end, we can’t promise you sunny skies every day, but we’ll do our best to create a plan that helps you avoid a potential retirement storm coming your way.