Allocate

Advisors recommend that investors within 10 years of retirement aim for an asset mix of about 60% stocks and 40% bonds—and within those broad asset categories, it’s important to be diversified. Many U.S. retirement savers are overly allocated to domestic stocks, which outperformed during the great bull market that ended at the beginning of last year. “Participants already have a bias toward U.S. equities, because that’s where we live, that’s what we know, and the market environment over the past 10 years has made the case for diversification more difficult,” says Liana Magner, head of retirement and institutional at Natixis Investment Managers in the U.S.