Investing is always a smart move, but it can also be risky
business. Losses and “downs” happen regularly in the investment world and can
affect even the smartest and most careful of investors. Plus, no matter how
removed it may seem, there is always the possibility of a recession or a market
crash; it’s happened before, and it could happen again. The good news, however,
is that, no matter what the future may hold, there are surefire ways to protect
your portfolio and your investments.
Embrace Diversity
First things first, it’s always smart to diversify your
portfolio as much as possible. This means having a good mix of investments,
including stocks, stock mutual funds, exchanged traded funds, cash, real
estate, cash value life insurance, precious metals, and more. The more diverse
your portfolio is, the greater the chance that some of your investments will
survive no matter what happens.
Go for Guarantees
Guaranteed investments are called guaranteed for a reason-
because they’ll always be valid investments, no matter what. Some good examples of guaranteed investments
include:
·
Bank CDs
·
Treasury securities
·
Fixed annuities
·
Indexed annuities
·
Universal life insurance
·
Callable CDs
·
Corporate bonds
·
Preferred stocks
Pay off Your Debts
Finally, make sure that you pay off all or most of your
debts. In many cases, money that you do accrue can be “snapped up” by creditors
before you ever get to see or use it. Thus, the best way to protect your
portfolio and all the hard work you’ve put into it is by limiting your debt so
that you don’t have to worry about it at all or, at the very least, can pay it
on your own time and with funds you’ve
designated for that purpose.
As you can see, there are things you can do to keep your
portfolio safe. Utilize these tips for safer investments now!
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