Am I Properly Diversified?

Help to reduce the risk and learn how the right mix of investments can help you achieve your financial goals.


Diversification can be easily explained with an old saying: Don’t put all your eggs in one basket.


Diversification of your investments means having the right mix of fixed assets and equity assets.


Fixed Assets vs. Equity Assets

Fixed assets (e.g. bonds, CDs) are those assets which earn a set rate of return for a set period of time. Equity assets (e.g. stocks, house, real estate) are more volatile.

There are many different types of “fixed assets” including but not limited to:

  • short-term bonds
  • long-term bonds
  • taxable
  • nontaxable
  • government
  • global
  • floating rate

 

On the equity side, again, there are numerous categories some of which are:

  • mid-cap
  • small-cap
  • large-cap
  • growth
  • value
  • International
  • emerging markets

 

For our purposes diversification means coordinating your risk tolerance with your time frames and, based upon those factors, putting together the proper investment strategy to help you achieve your financial goals.


When investing in fixed income strategies, you need to watch the interest rate environment closely. If you have all of your money in government security bonds and interest rates rise, you can lose principle - even though bonds are considered safe. Equities, on the other hand, are more volatile; they fluctuate, depending upon market situations, supply and demand, as well as the economic sectors.


Beacon Financial Group can help you minimize these risks utilizing proper diversification strategies and other sound financial planning techniques. We can show you how to reduce market downswings and help take the roller coaster ride out of your investment portfolio. We have been helping clients for over 23 years and believe that slow and steady wins the investment race.


For additional guidance, you can complete a financial profile or questionnaire which helps you list your assets, liabilities, income and expenses. Please complete the secured form on our website or print the form and mail it to us. This is the first step on your way to financial independence.


How can proper diversification help you achieve your financial goals?­­­­­­



   **Diversification does not guarantee investment returns and does not eliminate risk of loss.