As the U.S. economy continues to recover, a small panel of TIAA-CREF professionals reflected on recent events in Japan and North Africa as well as emerging investment trends and opportunities. They concluded that broad diversification of investments will continue to be the best way for people to achieve long-term goals supporting retirement savings.
Moderated by Michael Santoli, the associate editor and a long-time columnist for Barron’s, the panel opened the second day of a special TIAA-CREF conference for institutional plan sponsors on Thurs., April 14.
Addressing the inherent difficulty of pursuing long-term financial goals amid the swirl of current events, Scott Evans, who leads TIAA-CREF’s Asset Management business, advised a balanced yet disciplined approach.
“You need to understand that the short-term environment sets prices and expectations,” Evans said. “At the same time, you need a long-term lens and should be willing to hold long-term, income generating investments.”
The panelists concurred on the importance of creating a diversified portfolio that offers exposure to inflation friendly assets such as real estate, agriculture and equities, as well as annuities to lessen longevity risk and generate lifetime income. Among their key points:
Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect against a loss of income.
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