Unlock the Secret to Maximizing Your Retirement Savings
When it comes to retirement planning, having a solid strategy in place is crucial. However, research suggests that many self-directed savers are falling short when it comes to protecting their hard-earned funds. In fact, those who work with a financial advisor have been found to save nearly twice as much for retirement as those who don’t.
The Power of Professional Guidance
A recent study by Charles Schwab analyzed data from its Preferred Choice Retirement Accounts (PCRAs) and found that participants who worked with financial advisors had an average balance of $535,354, nearly double that of non-advised participants. Broken down by age group, Baby Boomers held the largest balances, averaging $520,616, followed by Gen X participants with an average of $299,520, and Millennials with $102,113.
The Benefits of Diversification
One key takeaway from the study is the importance of diversification. Advised participants had a more diverse allocation of assets, with no single exchange-traded fund (ETF) making up more than 4.05% of their portfolio. They also held a lower percentage of individual equities, with Apple stock making up 9.37% of their equity assets compared to 12.59% for non-advised participants.
A Smarter Approach to Asset Allocation
Advised participants also had a lower percentage of cash holdings, at 5.70% compared to 15.71% for non-advised participants. This suggests that advisors favored a more balanced approach to asset allocation, reducing exposure to individual assets and thereby reducing risk in a volatile market.
Take Control of Your Retirement Savings
If you’re looking to maximize your retirement savings, consider speaking with a financial advisor. They can help you develop a personalized strategy tailored to your financial goals and risk tolerance. With the right guidance, you can make informed investment decisions and set yourself up for long-term financial success.
Wealth-Building Tips
- Consider speaking with a qualified financial advisor to build a retirement plan aimed at your personal goals.
- Use a free investment calculator to get a good estimate of how to grow your money over time.
- Keep an emergency fund on hand in case you run into unexpected expenses.
- Compare savings accounts from different banks to find the best option for your needs.
By taking a proactive approach to retirement planning and seeking the guidance of a financial advisor, you can set yourself up for a more secure financial future.
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