The Importance Of Retirement Account Diversity

by | Aug 24, 2021 | Financial Advising

One of the challenges in trying to plan your own retirement is an understanding of the ways to protect your retirement investments. People in Greenville, SC, typically turn to experts on retirement planning to help them, which is why professionals like Matt Dixon are essential to creating a well-rounded retirement plan.

Unfortunately, without the expertise and advice of Matt Dixon, people often make the mistake of investing everything into one type of account. This can dramatically limit the ability to take advantage of the full tax breaks on the various investment options.

Investment Accounts

One of the first conversations clients have with Matt Dixon is about their current investment accounts. Often people in Greenville, SC, are simply using the wrong account type, resulting in additional taxes in the current year. By making a change, such as placing taxable investments in a tax-deferred IRA, it is possible to reduce the amount you are paying, providing greater savings opportunities.

Best Options

There are many different types of investments to consider. Individuals can develop a strategic plan to add mutual funds, municipal bonds, and ETFs (exchange-traded funds) to their portfolio.

The key is to avoid having all one type of investment. This is also true if you are investing in stocks, property, or other types of assets. The more diversity you have in strategic types of investments, the lower the risk of a significant loss if an unforeseen economic or market event occurs.

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