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Many Graduates Entering the Workforce May Be Compiling Investments that Aren't as Diversified as They Think
Fully produced report in MP3 format:
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(92 seconds)
-- How Will You Use This Story? --
(BALINTFY OPEN):
THIS FALL, MORE THAN ONE-MILLION COLLEGE GRADUATES ENTERED THE
WORKFORCE--BEGINNING THE FIRST OF WHAT COULD BE SEVEN JOB-MOVES DURING
AN AVERAGE 40-YEAR EMPLOYMENT CAREER. ACCORDING TO A RECENT STUDY
FROM FIDELITY INVESTMENTS, ONE-THIRD COULD BE COMPILING A
SERIES OF STAND-ALONE RETIREMENT-SAVINGS ACCOUNTS THAT MAY NOT BE AS
DIVERSIFIED AS THEY THINK. WITH EACH JOB-CHANGE, THESE NEW
WORKERS, AND MILLIONS OF OTHERS, ARE FACED WITH THE INCREASINGLY
CHALLENGING TASK OF MONITORING AND MANAGING THEIR WORKPLACE
RETIREMENT-SAVINGS ACCOUNTS. CAROLYN CLANCY--SENIOR VICE
PRESIDENT OF FIDELITY PERSONAL INVESTMENTS--EXPLAINS...
(CLANCY):
"OUR RESEARCH ALSO SHOWS THAT 41-PERCENT OF INVESTORS WITH
MULTIPLE RETIREMENT ACCOUNTS BELIEVE THAT MAINTAINING SEPARATE ACCOUNTS
MAKES FOR A MORE-DIVERSIFIED PORTFOLIO. WHILE AMERICANS ARE MORE
SAVVY ABOUT INVESTING, MANY HAVE LOST SIGHT OF WHAT 'DIVERSIFICATION'
REALLY MEANS: SPREADING OUT MONEY OVER DIFFERENT TYPES OF
INVESTMENTS, SUCH AS STOCKS, BONDS, AND CASH, TO MANAGE RISK--WHICH
CAN'T BE ASSURED SIMPLY BY HAVING MULTIPLE ACCOUNTS."
(BALINTFY CLOSE):
IN REVIEWING THE PORTFOLIOS OF NEARLY ONE-HALF-MILLION INVESTORS
OVER THE PAST YEAR, FIDELITY FOUND THAT MANY NEED TO BE REMINDED OF
THREE BASIC TENETS FOR MANAGING A DIVERSIFIED PORTFOLIO: KNOW WHAT YOU
OWN; KNOW HOW MUCH YOU'RE PAYING; AND KNOW WHEN IT'S TIME TO SEEK
GUIDANCE. INVESTORS SHOULD KEEP IN MIND THAT DIVERSIFICATION DOES
NOT ENSURE A PROFIT, OR GUARANTEE AGAINST LOSS. FOR MORE
INFORMATION, INVESTORS CAN CALL 1-800-"FIDELITY"; VISIT ONE OF
FIDELITY'S 110 "INVESTOR CENTERS", LOCATED NATIONWIDE; OR LOG
ONTO FIDELITY'S "RETIREMENT RESOURCE CENTER", AT
W-W-W-DOT-"FIDELITY"-DOT-COM-SLASH-"RETIRE". THIS IS JOE
BALINTFY.
