Retirement Portfolio Protection Tips

With the Great Recession of 2007-2010, the equity markets plunged to deep lows, devastating countless investors and their hard earned retirement funds.  These included many large retirement fund plans.   Even in good times, there can be wild gyrations in the market, leading to huge gains and losses, almost simultaneously.  The economic growth that preceded the crash of 2008 greatly inflated many retirement funds-making them fat and rich.  When the equity markets collapsed, many of these investments went with them.

Seg funds may be something to protect and grow your investments.  Not as potentially explosive in growth as other investments, but something that will guarantee your investments and grow your return in time.  Additionally, they come with a death benefit and a protection from creditors, in case of bankruptcy.  Diversification of your retirement portfolio is absolutely important.  Also, part of your liquidity (and credit) can still take risks in more riskier markets.  However, with lowered exposure and margin calls, the investor can maintain and grow their money better, while taking advantage of both Bear and Bull markets.

The thing is to keep debt levels as low as possible-investing more with liquidity than credit-keeping the debt to liquidity ratio as low as possible. The economy is very cyclic.  However, good times and bad times seem to go on forever with investors raking in huge dividends and profits.  Like foreshocks before a major earthquake, there are warnings that the good times are coming to an end.  Many investors choose to ignore them, thinking that any correction will be minor or easily rode out.  Economic pundits lull many investors into a sense of complacency, as money flows like wine.  With the economy still uncertain for at least several more years, many of the small to medium-sized investors still have to be careful about their retirement portfolios.  Although the stock market is once again growing, massive debt, low real estate prices, and a sick global economy still reigns supreme.

Therefore, protecting your retirement portfolio can seem like a  huge gamble at best.  At times, investing can seem like a week to week thing.  Learning to navigate these troubled economic seas can be very harrowing.  Having a well diversified and balanced portfolio, including Individual Retirement Arrangement (IRA) funds, mutual funds, hedge funds, seg funds-encompassing liquidity and a well-balanced global market helps considerably.  Diversifying not only in paper, but commodity and other tangible assets is critical.  Obviously, the more liquidity and available credit that one has, potentially the more growth they can make in their portfolios.  On the flip side, they can lose far more, feeding a vicious, never-ending cycle that are indicative of deep economic downturns and eventually the return of good economic times.

The key is having a well-balanced and diversified retirement portfolio, including protective investments like seg funds.  Balancing out your portfolio through research and good investment advice into good opportunities that have lower risk, while having the funds and opportunity to jump into more riskier investments from time to time.  Initially, keep your exposure to riskier markets and situations as low as possible.  In the end, a more blissful retirement with money comes as a result.