Usually most investment portfolios have a large percentage of stocks. In times of a financial boom, this worked great but if you planned for retirement in 2009, these same stocks would have led to huge declines in the value of your portfolio.

On the other hand, if you had put all your money in bonds or CDs (certificates of deposit), then you would have to live with dismal returns, especially when you consider the impact that 3% long term inflation will have on your savings. [Read more…]