International Wealth Mentality Month

Diversifying a Portfolio

January is International Wealth Mentality Month.  This month serves as a reminder to grow wealth by diversifying one’s financial portfolio.  Achieving diversification is accomplished by blending dissimilar assets together so that a portfolio does not have too much exposure to an individual asset.  Including different kinds of stocks is a good starting point.  Blending in different bonds is a good building block.  Looking outside stocks and bonds as investments can create a well-rounded portfolio that is not dependent on the market.  Some examples of further diversification include real estate, cryptocurrencies, art, venture capital, and life insurance. 

The graphic below provides a basic comparison between the stock market, real estate, and life insurance.  While each investment has its pros and cons and should be weighed based on each client’s background, including more diversity can help protect from a downturn in one sector.

Contact us with any questions or opportunities to help your clients achieve their goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.