We’ve all heard people at parties draw a crowd by bragging about their hot stock pick.
8 Ways To Diversify Your Investment Portfolio
Spreading your investment money around helps curtail risk. So while diversification may not make for sexy cocktail conversation, it does make financial sense.
Their stocks may be doing so well now, but next time they could be hitting you up for cash after throwing everything away on a big investment that went south.
Spreading your investment money around helps curtail risk, says JJ Montanaro,CERTIFIED FINANCIAL PLANNER™ with USAA. So while diversification may not make for sexy cocktail conversation, it does make financial sense.
“You have some investments going up, while others are going down,” Montanaro says. “Some zig while others zag.”
Montanaro offered these basic tips to help bring diversification and stability to your investment portfolio:
- Mix it up.
- Diversify your bonds.
- Diversify your stocks.
- Think mutual funds.
- Know your funds.
- Evolve over time.
- Let someone do it for you.
- Talk to a professional:
Source: The USA Voice
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