Just like in life, it is important to not put all your eggs in one basket, the same is true with your investments. One of the best ways to reduce the risk of investing is to diversify your money across many different types of asset classes, i.e. large cap stock, small cap stock, emerging stock, bonds. That way, if one asset class performs poorly in any given year, there is a chance that another asset class will perform well and balance out your losses. This helps smooth out the volatility roller coaster of investing which will help you stay invested over the long haul.
graphic by Grace Niu
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This post was contributed by Brittney Castro, CFP® professional and creator of www.FinanciallyWiseWomen.com. Brittney Castro is not affiliated with TheEveryGirl.com. Brittney A. Castro is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. California Insurance License #0F33895