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Is Your Investment Portfolio Too Risky? Here's How to Fix It!


Published on 2025-02-18 19:41:27 - MSN
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  • Have you ever wondered why experienced investors don't put all their money into one stock, one bond, or one type of asset? The reason is simple
  • diversification. But what does diversification really mean,

The article from MSN Money discusses strategies for investors to assess and adjust the risk level of their investment portfolios. It highlights the importance of understanding one's risk tolerance, which can change over time due to factors like age, financial goals, and market conditions. The piece suggests several methods to reduce risk: diversifying investments across different asset classes, rebalancing the portfolio to maintain the desired asset allocation, and possibly shifting towards more conservative investments like bonds or dividend-paying stocks as one approaches retirement or if market volatility increases. It also mentions the use of tools like risk assessment questionnaires and consulting with financial advisors to tailor the portfolio to one's current risk profile. The article emphasizes that while reducing risk might mean lower potential returns, it's crucial for protecting capital, especially in uncertain economic times.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/investment/is-your-investment-portfolio-too-risky-here-s-how-to-fix-it/ar-AA1zjsoc ]