based on your objectives, your time horizon and your risk tolerance.
Too often, investors hold too many investments thinking it’s the best way to spread the risk and protect their wealth. While it is absolutely true that diversification is key to a successful portfolio, you don’t have to be everywhere. Over-diversification can work against you because it means you have so little in multiple investments you won’t benefit from investments on the rise. Think about it: if you have $30,000 in 30 different investments of $1,000 each, how are you going to make money? You’re not.
Of course, as a smart shopper, you want to buy clothes, shoes, cars, furniture, travel--you name it--when it’s on sale. It’s just good sense. Everyone likes to get a deal. So you check the item to make sure there are no holes, tears or any other type problem and make the purchase. However, for many people, that same approach is tossed out the window when it comes to buying investments. Why? In a word, fear.
Put simply, actively managed mutual funds are the result of the work of their managers. It’s the manager that researches the huge number of investment products available and then chooses and buys the ones that best reflect their investment style. As an investor, you are paying for their strategy, smarts and style. Here are a few key pieces of information you should know when investing in a mutual fund: When you put money into a fund you get the advantage of affordable diversification.
You don't have to be. There are many questions when deciding how to invest and planning for retirement. Watch the Q&A video with Allan Small regarding important factors to consider.
When The Stock Market Falls, What Should You Do?
When the stock market falls, people tend to panic. Watch this Q&A video with Allan Small to learn what are the steps you should be taking.