DETERMINING YOUR INVESTMENT PROFILE
Whether you're looking forward to semi-retirement at 45, early retirement at 55, or full retirement at 65 or later, choosing the right mix of investments can be crucial.

Being too cautious can be a mistake when you're investing for your future. Many people believe that the best thing they can do with their nest egg is to put it in a portfolio of low-risk investments, such as certificates of deposit or money market funds. While such investments can offer regular payments and help preserve your principal, they generally don't protect your savings against the relentless effect of inflation or provide the growth you need to achieve your retirement savings goals; that's why you should consider equities ¹as part of your overall portfolio. Historically, equities have increased in value much faster than fixed-rate investments and have significantly outpaced inflation over the long term. While equities can be more volatile in the short-term, their volatility has tended to even out over time. So the longer you have to invest, the greater your use of equities generally can be.

Even if you're retired, or close to retiring, consider keeping a portion of your assets in equities. That way, you give your investments the opportunity to retain more purchasing power throughout your retirement.

The more aggressive approaches are generally more appropriate for investors who can afford the greater risks involved, either because they have sufficient assets to weather short-term volatility or because they have a long time horizon that allows them to look past occasional downturns.

When comparing asset allocation strategies to your personal financial situation, you should consider your time frame and all of your personal savings and investments, in addition to your retirement assets and risk tolerance level.

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