Chapter 6

Playbook: Retirement Savings Investment Strategies

First published: 02 January 2012

Summary

For someone seeking the benefit of portfolio diversification, the use of a hierarchical investment process may be suitable. In this situation, an investor allocates a portion of assets to each asset class. In a retirement savings account, this process takes the form of selecting from the plan's available fund options to fill the target asset allocation for each asset class. The question then becomes how much to dedicate to each asset class, which will be addressed in this chapter.

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