Wednesday, May 6, 2015

Dare to Diversify So You Can Prosper

Throughout the years, successful investing has actually had less to do with the picking of individual stocks and more to do with the choosing of a well-diversified portfolio that consists of a nice mix of different types of assets. We've all likely heard the famous phrase, "Don't put all of your eggs in one basket." This is very good advice when it comes to investing.

There are numerous ways you can diversify your investment mix, depending on your tolerance to risk, your investment time horizon, and your overall financial goals.While the idea of putting together a well diversified portfolio of investments may seem to be a bit daunting, the good news is that it does not have to be difficult.In fact, by starting out with a plan, you will be able to get a good idea of the types of assets to include in your portfolio initially - as well as how and when you may need to adjust your diversification strategy over time.An actively managed portfolio can help to alleviate much of the work that must be done by an individual investor.
By allowing specialists to take over the task of replacing various investments at the appropriate times, you can see a difference in their overall portfolio return while still having time to play with your children or take those important vacations.