Diversify your investments in 2024?

Here’s a guide you can consider if you are looking to diversify your investments in 2024 but not sure where to start:

1. Go for Variety, Not Quantity – Having numerous investments doesn’t guarantee diversification. True diversity comes from having a mix of different asset types. Ensure your portfolio includes stocks, bonds, real estate funds, international securities, and cash.

2. Understand Each Asset’s Role:
➡ Stocks: Fuel growth in your portfolio.
➡ Bonds: Generate income.
➡ Real Estate: Acts as a hedge against inflation and provides low correlation to stocks.
➡ International Investments: Offer global growth and help maintain buying power.
➡ Cash: Provides stability and security.

3. How to Allocate Your Money:

✔ Emergency Fund: Prioritize cash and income investments for emergencies and short-term goals. Have at least 6 months’ worth of living expenses in your emergency fund
✔ Stocks vs. Bonds: Subtract your age from 100. Invest that percentage in stocks, and the remainder in bonds (e.g., if you’re 20, invest 80% in stocks and 20% in bonds).
✔International Securities: Allocate 10-25% of the stock portion to international investments, adjusting based on age and financial status.
✔Real Estate Investment Trusts (REITs): Deduct 5% from both stocks and bonds, then invest that 10% in REITs for added stability.

PS: Diversify Within Investment Categories: Remember, diversity within each category is key. For stocks, consider different industries; for bonds, explore various durations and issuers. This approach spreads risk and maximizes potential returns.

The key to successful investing is thoughtful diversification.
Happy investing!