6 Signs Your Retirement Account Is Invested Too Aggressively

As the S&P 500 hums along, it's easy to believe that the stock market is incapable of going in any direction but up. However, invest long enough and you'll know what it's like to watch your portfolio take a hit when a bear market kicks in.A bear market is described as a period in which the value of a broad market index (like the S&P 500) drops by 20% or more. Bear markets don't tend to occur as often as bull markets and don't last as long, but that doesn't mean they don't happen. And when they do, the best way to protect your money is by diversifying your portfolio.That means including a variety of asset classes and securities that reduce risk. As you plan for retirement, spreading investments out among different categories -- like stocks, bonds, cash, and real estate -- can minimize the impact on your portfolio if one of those categories performs poorly. If your mom warned you not to "put all your eggs in one basket," she wasn't wrong, especially if she happened to be talking about investing.Continue reading