MSN tapped Laura for insight into the traditional 60-40 portfolio formula so many retirement savers use. The strategy splits an investment portfolio, where 60% is invested in stocks, and the remaining 40% goes to bonds. This strategy has been contested before. Here are Laura’s comments:
Diversification can also expand to include other asset classes, such as real estate, commodities, private equity and alternative lending, investment options that are becoming more available to everyday investors through exchange-traded funds and mutual funds, said Laura Mattia, a certified financial planner and chief executive officer of Atlas Fiduciary Financial. There are also ways to diversify within stocks and bonds, such as international choices. “Diversification spreads risk across numerous asset classes and geographic regions, reducing the impact of any single market downturn on your overall portfolio,” she said.