How can I diversify my investment portfolio?
Diversifying your investment portfolio means spreading your investments across various asset classes to reduce risk. What types of investments do you currently have?
I mostly have stocks. Should I consider bonds or real estate?
Yes, adding bonds can provide stability, while real estate can offer potential for growth and income. Have you thought about how much you want to allocate to each?
I’m not sure. What’s a good rule of thumb for allocation?
A common rule is the 60/40 split: 60% in stocks and 40% in bonds. However, it depends on your risk tolerance and investment goals.
What about alternative investments?
Alternative investments like commodities or cryptocurrencies can also diversify your portfolio. Just be cautious as they can be more volatile.
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