Creating Your Portfolio
A diversified portfolio is a combination of several investments assets including stocks, bonds, cash, real estate, and international investments. Different types of investments do better in different economic conditions. By diversifying your investments in a portfolio, you are more likely to reduce risk and enhance potential return.
Being smart about risk
Determining the right mix of stocks, bonds, real estate, cash and other investments for you is dependent on your time horizon and risk tolerance.
If you have a conservative view of money or a near term goal, we don’t recommend the risk of a lot of variation of return for the potential return. If your goal is in the distant future, we are much more likely to recommend you take on the risk of varying returns for the potential of higher long-term return. By doing so, you have a good chance of making more money over the long run.
Risk is reduced over time, and returns are compounded over time.