What is the importance of a diversified portfolio in retirement?

It’s difficult enough to plan and save right for retirement, given today’s topsy-turvy financial markets. What’s more, it can be a bit of a puzzle in those Golden Years to come up with the right withdrawal plan. What is the importance of a diversified portfolio?
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Why the Recent Uptick in Housing is So Important

By all accounts, the news coming from the Case-Shiller home price index is good news; an average increase of 10.9% is nothing to scoff about (http://bit.ly/6Ivqgq). Granted, this is an average--areas like San Francisco experienced explosive growth, up 22.2% which led to some skewing of the numbers, but it's irrefutable that the signs all point to steady growth in the housing market. This isn't just good news for the housing market as historically a robust housing market has led to broader economic recovery, not vice versa.

In each of our three previous recessions (1980, 1991 and 2001), economic recovery was prefaced by significant growth in residential housing, growing at an average rate of 30% in the initial years of recovery.

But why is this sector so important?

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Borrowing From Your 401(k): A Financial Sin

When we put money into our retirement accounts we do so for a specific purpose: retirement.  All the money you have funneled into your 401(k) is supposed to buy you that dream retirement lifestyle you spent your entire life working toward.  But unfortunately, more and more people are finding that life can throw them curveballs that, in turn, can throw off their financial plan.  Often times, when people find themselves in a financial bind, they find it hard to ignore that shiny apple hanging in front of them in the form of their 401(k).

Far too often people are reaching out to pick that apple and borrow money from their 401(k).  The reasons for their need varies from home purchases, to their kid’s college tuition, to a myriad of other financial emergencies.  Most people who make this move know that it’s a “forbidden” action, but what many people don’t understand is why.  What is the danger in picking that apple and borrowing money from your 401(k)?  If more people knew the consequences, it would be hard to believe that many of them would make the same decision.

So what’s the big deal about borrowing from your 401(k)?  What are those consequences that I as your financial advisor seem so concerned about?  Here are just a few.

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