Asset Diversification Is NOT Boring?And Will Make You Money

OK, this article will start with the cheapest piece of advice you will receive this year. In fact, it will make you money. At the very worst it will stop you from LOSING all your money.

Advice: In investment, diversify your portfolio.

Repeat Advice: In other words, place your money in a variety of different investments.

In case you missed it the first time: Don't give Uncle Dave-o you life savings to put into a business venture that's a sure thing.

This simple piece of information is ignored by 85% of household investors. Most households put their money in one stock and hopes it ends up making money. Most people feel comfortable allocating all their money to one investment, one project. If the investment makes money - GREAT!! If the investment loses money - #x*#x!!!! Do you want to be stressed out about your money? No. You want your money to work for you.

When you visit a financial planner the basis of every strategy is diversification and asset allocation. Every disclaimer states that every case is different - it is true they are but the one common element implemented in every case is DIVERSIFICATION.

The theory behind it is this. If you place money in a variety of investments, with 70% in moderate-yielding, conservative investments and the rest in high-yielding speculative stocks. Then if you lose some money on the speccies, then at least you live to fight another day and more likely you may break even after you add the interest from your solid investements . If you make money on them, add that onto the other interest and you are up?Way Up!!

The key to solid investment is make the most of your money, earn the average (index funds and cash), and the use part of your assets on riskier investments. You can allocate money to property, cash, bonds, shares, trees, olives or whatever takes your fancy?The average sounds boring to most people but did you know that over 80% of actively managed funds perform before the market average. Average doesn't sound so bad now.

Psychologically, when your high-yield investments make you money you kick yourself for not allocating more funds to the investment. Don't fall for this trap. Pat yourself on the back for having a win and move on with your strategy. Confidence and 'what could have been' will be your downfall.

Dominic Dirupo survived the Tech Boom and Crash with Goldman Sachs and Deutsche Bank after graduating with Honours at London's City University. Dont Buy Information is an online resource designed to help every consumer make a business decision for free. No Strings Attached.

---

Rich or Poor - Get the Knowledge

Most people work hard all their lives only to "retire"... Read More

Why Get Rich When You Can Be Wealthy?

"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More

Wealth - 10 Basic Steps to Achieving It

Everyone wants to be wealthy. Only a few actually achieve... Read More

Creating Money, Prosperity, and Abundance Now (Part 1)

I have given many prosperity lectures over the years and,... Read More

10 Ways To Find The Money Hiding In Your Paycheck

No matter how tight things are financially for you; no... Read More

Let Me Inspire You - You Aint Seen Nothing Yet! (PART-1)

You know about compounding right? You understand what pyramiding your... Read More

What is Your Creative Retirement Plan?

The idle are a peculiar kind of dead that cannot... Read More

How To Be the Ultimate American Consumer

Feel like a lemming lately? Ready to follow the crowd... Read More

Wealth Building Strategy

There are many of us who are working on our... Read More

Personal Finance Rules to Building Wealth

Key 1 Pay your self firstkey 2 Saving is not... Read More

Financial Intelligence - Compounding (The Ninth Wonder of the World)

Compounding: The Ninth Wonder of the WorldBy Nicola Cairncross Compounding... Read More

The Difference Between Wants & Needs

So you want to become wealthy? While there is no... Read More

Does Money Grow On Trees?

"Money Doesn't Grow On Trees."Some of us even believe it.... Read More

How to Make More Money

When I was a student in London, I had a... Read More

Does the Moon Have Covers?

Recently, one late winter night, my four-year old son and... Read More

The Secrets of World Money Flows and A Simple Way to Understand Them

You can learn the secrets of world monetary flow if... Read More

Residual Income - 3 Ideas for Long Term Profits

A residual income is one that comes in no matter... Read More

Dont Leave Your Financial Success To Chance

Recently I was reading a book called The Millionaire Mind.... Read More

High Flying Market Makes Good Buys Hard to Find

AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER... Read More

The 11 Best Money Saving Ideas of All Time - Part 3

At any time in history, no matter what the current... Read More

Want Money? You Got It!

Six out of six people who were asked to list... Read More

Top 10 Secrets of Getting Rich!

As many people have observed, "Success leaves clues." If you... Read More

The Top 10 Steps to Extraordinary Personal Wealth

I recently came across startling figures about the average American's... Read More

Trustee Fees: How Much is Enough and How Much is Too Much?

I am often amused by the ads and offers I... Read More

Generate Savings with Smart Use of Electricity!

No matter what income level you are currently at, generating... Read More

Wealth Secrets: Saving Your Way to a Fortune

SCENE 1: Pharaoh has just woken up from a very... Read More

Online Retirement Opportunity: Freelance Copywriting

For most of us, the idea of retiring simply on... Read More

Compounding: The Science Of Exponential Money Generation

It all begins with a simple calculation.You are home on... Read More

Building Wealth by Paying Yourself First

When I look around at all of my friends, and... Read More

Uncle Sams Snake Oild

Uncle Sam and his band of merry-men, better known as... Read More

Could a Roth IRA be Better Than a 401(k)?

Very few people whom I know are familiar with the... Read More

10 Ways to Save $50 Per Month: The Art of Pinching a Penny Until It Screams

1. Save up to 50% per month on convenience cleaner... Read More

Simple Strategies to Making Financial Gain

Now is a great time to make it a habit... Read More