From Yahoo Finance: 2025-03-30 06:44:00

Hiring a money manager offers expert investment advice to protect and grow your portfolio. However, relying solely on their decisions can be risky if your investments aren’t diversified. Single stock investments can be volatile, and the stock market history shows significant fluctuations. Maintaining a diversified portfolio is crucial during market downturns or emergencies.

To mitigate risks, diversify your portfolio across different asset classes like stocks, bonds, and real estate. Adjust the allocation based on your risk tolerance and proximity to retirement. Real estate investments can offer returns but also come with risks like vacancies and repairs. Consider real estate investment trusts (REITs) for diversification without property ownership.

Diversification within asset classes is key. Mix corporate and municipal bonds for tax benefits, and own stocks from various market sectors. Sector-specific ETFs or total stock market ETFs can simplify diversification. While broad market ETFs match market performance, individual stocks offer potential for higher returns. Balancing both can lead to long-term success.



Read more at Yahoo Finance: My dad’s wealth manager put my entire $50K in savings into one investment. Is he setting me up for disaster?