Maximizing Retirement Portfolios with Diversification

This chapter explores the role of simulation tools in evaluating retirement portfolios, focusing on safe withdrawal rates and the limitations of the traditional 60-40 investment strategy. It emphasizes the need for portfolio diversification, including uncorrelated assets like gold, to enhance performance and mitigate risk during market downturns. Practical strategies for implementing risk parity and the importance of evaluating portfolio effectiveness are also highlighted to guide investors towards more stable financial outcomes.