Step 2: Choose Your InvestmentsWhether 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. While such investments can offer regular payments and help preserve your principal, they generally don't protect your investments against the relentless effect of inflation or provide the growth you need to achieve your retirement investing goals.
Many financial professionals consider asset allocation the single most important factor in predicting investment success.