The balance in either case could be in bonds and money market funds. This adds yet another level of diversification to the portfolio and can further reduce investment risk. Your financial advisor can help you select an asset allocation that is appropriate for your goals, and time frame. Staying invested through periods of market turbulence can also help reduce risk of loss as the variability of returns tends to decrease over time. The mechanics of investing in stocks Individuals can buy stocks directly through a full-service or discount brokerage. They can also gain investment exposure to stocks through equity mutual funds and other pooled investment products. Some employers offer their employees the opportunity to buy company stock through an employee stock ownership program or a retirement plan. Because of their long-term potential, stocks have a place in nearly every portfolio. Speak with your financial advisor about how you can use equity investing to help meet your financial goals.
Average is calculated from the sum of all potential 12-month periods from the first business day of each month and ending on or before the last business day. Past performance is not a guarantee of future results. Index performance does not reflect the effects of investing costs and taxes. Actual results would vary from benchmarks and would likely have been lower. It is not possible to invest directly in an index. (CS000168) © SS&C. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions. The material was authored by a third party, DST Retirement Solutions, LLC, an SS&C company ("SS&C"), not affiliated with Merrill or any of its affiliates and is for information and educational purposes only. The opinions and views expressed do not necessarily reflect the opinions and views of Merrill or any of its affiliates. Any assumptions, opinions and estimates are as of the date of this material and are subject to change without notice.