Diversifying Your Portfolio with Retirement in Mind

Retirement planning has changed since your parents and grandparents were saving for their post-work years. As the average life expectancy and the cost of living continue to increase, today’s retirees are finding that they needed more savings than they previously expected. Traditional saving methods are, of course, helpful, but you might need an additional boost to save for a comfortable retirement. Diversifying your portfolio could be the boost you need. 

You might need more than you think, and diversification could help you get there.

People are living longer, and that’s affecting how much they need to save for retirement. It’s no secret that dying is an uncomfortable topic, so it’s not often that people want to think about when they will die. Though it’s not a fun conversation, the reality is that the longer you live, the more money you’ll need in your retirement savings. So, having a general idea of how long you might live will help you project your savings needs.

To help you calculate your potential lifespan, the Social Security Administration provides a life expectancy calculator. Consider the number of years that you’ll need to save for and factor in inflation to get a better idea of how much to save for retirement.

With the right strategy, diversification can help you to build and protect your savings.

Diversification is a buzzword in the investment industry that deserves all the attention it gets. Your investment strategy can have a significant impact on the amount that you have to live on once you leave the workforce. Consider your dream retirement scenario. Are you moving to a new city? Taking frequent vacations? Picking up a new hobby? Whatever your plans, diversification may increase your potential to reach that goal, beyond traditional (and more passive) saving strategies. Your advisor plays an important role in planning your diversification, but there are a few things that you can do on your own that may increase your earning potential. 

Diversify the types of stock you are investing in.

Imagine for a second that every stock you own is rooted in the automotive industry. Now imagine that a major event happens that plummets the auto industry’s revenue, sending the entirety of your stock portfolio spiraling downward. For this reason, you’ll want to ensure that the stocks you’re investing in are varied so that, if one falters, the others are less likely to follow suit.

Diversify between stocks and bonds.

Choosing a selection of both stocks and bonds helps to balance your risk. Stocks can be more unpredictable than bonds, so the more bonds in your portfolio generally means less risk. Your appropriate ratio of stocks to bonds depends on a variety of factors, such as your age, life expectancy, income, etc.

One rule of thumb to consider is to use their age as a rough guide for their portfolio risk. In this case, you would correlate your age with the number of bonds you held. For example, if you were 40 years old, 40% of your portfolio would be in bonds. That number would grow as you age, reducing your risk steadily until you retire.

Diversify in other areas, too.

Diversification isn’t all stocks and bonds. There are other ways to vary your portfolio that some don’t consider, such as real estate investments. Of course, these types of investments are best when held by more industry-savvy people, but consider, overall, that you can think outside of the box.

Your advisor can help you diversify your way to your dream retirement.

Diversifying a portfolio is an easier task when you have an advisor on your side. Not to mention that diverse portfolios may be more difficult to manage on your own. To have someone to lean on and guide you through this process, contact an advisor near you who can listen to your goals and help you achieve them through sensible strategies. 

Ready to boost your retirement strategy with expert diversification? Contact us today to schedule a consultation.

Any opinions are those of the author and not necessarily those of RJFS or Raymond James. Expressions
of opinion are as of this date and are subject to change without notice. There is no guarantee that these
statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you
may incur a profit or loss regardless of strategy selected. You should discuss any tax or legal matters with the appropriate professional. Asset allocation and diversification do not ensure a profit or protect against a loss.

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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.