Diversification is Paramount When it Comes to Investing

February 17 marked the beginning of Major League Baseball’s spring training. Though teams may be spread across the US, primarily Arizona and Florida, they all have a primary goal – prepare for Opening Day. Opening Day is when the official baseball season begins, and it’s one of the most exciting days of the year for baseball fans. The ultimate season goal, after preparing for spring training and playing 162+ games, occurs six months later when one team emerges as World Series Champions.

For retirement plan participants, spring training is the focus put on saving in their retirement plan.
Maintaining and increasing savings over time continues that training.

Successfully retiring and maintaining the lifestyle to which you’ve become accustomed is the equivalent of winning the World Series – it’s what we will have worked our entire careers to achieve.

A baseball team has nine players on the field, but only one player ever has the baseball at any one time. The team is well diversified with each person having their important role. A pitcher receives much notoriety, but the outfielder is equally crucial if a ball’s hit to them – the team is diversified, and each has his/her role.

The same is true with investing. A diverse portfolio of investments is important. No one knows which investment will perform the best or worst each year. Because of this, it’s meaningful to have a blend of investments, rather than picking-and-choosing based on what you hear on the news. We commonly refer to this “blend” as being diverse. Your retirement plan has this diversity.

Contact your RK advisor if don’t know how you’re invested or if other accounts you have may need an expert’s review. The RK team is here for you, and we want to help.

Nathan Woods, CFP® AIF® is a Senior Advisor with Rather & Kittrell.