BMO Retirement Tips of the Day: Diversify Your Investments and Continue Investing Throughout Your Retirement
TORONTO, ONTARIO--(Marketwire - Feb. 6, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.
Tip Number Eleven:
Diversify your investments
It is important to diversify your financial portfolio in order to minimize your risk and not have all of your investment eggs in one basket. Diversification means buying different investments that complement each other so that you are exposed to a variety of sectors, industries and products. This ensures that if one area in your portfolio is negatively impacted, the remainder of your investments are relatively secure. It's important to understand how and where your money is invested, and to review your portfolio on a regular basis.
Tip Number Twelve:
Continue investing throughout your retirement
When you take into consideration that you may only be saving for 25 to 30 years, and retirement can last just as long, it's important to continue to earn income on your investments during your retirement. Below are some useful tips to help you continue to invest throughout your retirement:
- Ensure that you have a minimum of five years' worth of withdrawals invested in low-risk, easily accessible investments.
- Keep a long-term view on the balance of your retirement savings.
- Avoid or minimize withdrawals from a declining portfolio by delaying expenses that are not absolutely necessary.
For more information on retirement: www.bmo.com/retirement.
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