INVESTMENTS 101: DIVERSIFICATION
If you’re like me, you find yourself daydreaming about exploring the world one day. Or perhaps you want to retire early. Whatever your goals are, investing is your key to attaining them. Diversification is the action of making something more varying or diverse. When investing, it’s best to diversify your money into different areas to help better protect you. If one sector takes a loss, hopefully the other sectors have made a gain.
If the stock market in recent days has shown us anything, it’s that it is unpredictable. Stocks, both foreign and domestic, have encountered some setbacks. You’re probably wondering, ‘Are any investments safe?’ The answer to that is yes. What type of return are you looking for? This is why diversification is important.
Buying real property is safer than playing the stock market, but not as safe as a Government Bond. Real property can be a home, condominium or land. It is the safest investment that could provide you with an ROI (return on investment). Real estate markets vary, but expect to own real property for a minimum of 5-years to get a decent ROI. If you want to stop daydreaming and start living, diversify your investments and add real property to your portfolio!”