Why Not Invest in the S&P 500 Index

Some people think that they can invest in the S&P 500 Index and everything will be alright for their retirement portfolio. But is this always the case? To learn "6 Ways The Wealthy Manage Their Investments That Ordinary Investors Do Not" click here: http://retirementplanningmadeeasy.com/investing Why Not Invest in the S&P 500 ONLY? Because it can be very volatile. It would not constitute a well-diversified portfolio. It only represents 500 of the biggest domestic companies. That means your portfolio would ONLY include equities, and ONLY equities from large cap American companies. No bonds, REITS, commodities, etc. Also, from the highs of 2008 to the lows of 2009 it dropped by approximately 50%. As a retiree, your portfolio will serve as a source of income to supplement your guaranteed income sources like Social Security. The more volatility your portfolio has, the more likely you will be forced to sell when it is down. Also, highly volatile portfolios can cause much stress for you as a retiree. If you see your portfolio jumping up and down by large percentages it can make you worried. What this causes many average investors to do is liquidate their portfolio after a big drop. Then they are not invested when the market rebounds. This can be a big mistake for you as a retiree. The solution is to have a written investment plan in place to help you make better decisions, as well as to help you avoid letting your emotions cause you to make bad investing decisions. To learn "6 Ways The Wealthy Manage Their Investments That Ordinary Investors Do Not" click here: http://retirementplanningmadeeasy.com/investing To read the full article that goes with this video click here: http://retirementplanningmadeeasy.com/why-not-invest-in-the-sp-500-index/ Warm regards, Chris Hammond

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