The latest research from asset allocation firm Arkema indicates that retirement investment is one of the most popular and efficient way to diversify your portfolio.
The research firm’s analysis of a sample of the world’s most popular retirement plans, including 401(k), IRA and 529 plans, shows that retirement plans are more popular among individuals under 35 and older than the average.
In fact, the study showed that in 2017, the average retirement investment age was 31.5 years old.
In contrast, the median age of an average investor is 32 years old and the average age of investors over 35 is 32.6 years old, according to the study.
However, the majority of individuals over age 65 have an average retirement portfolio that is not diversified.
The report also found that while the average annual returns are around 15%, the average monthly cost of saving for retirement is only around 2%.
This means that a large portion of the cost of an individual’s retirement savings is not for investments that are actively managed.
While it is important to diversate your portfolio, the report points out that there are several factors that should be considered when choosing the type of investment to make for your retirement.
For instance, the funds that Arkem recommends for your age range should be diversified and have diversified income streams.
Arkema also found out that the retirement funds that most people select for their portfolios are typically those that offer lower interest rates and lower fees than traditional investment vehicles.
The study also noted that investors who are more risk-averse are more likely to choose funds that offer a more flexible investment strategy.