Strategy #1:
Help fortify your portfolio’s defenses
Not all investments respond to market fluctuations the same way. When you know that a portion of your portfolio is potentially fortified from markets, you may feel more freedom to take calculated risks elsewhere. Allocating part of your portfolio to fixed income and cash-like instruments may make sense for you.
Additional portfolio ideas could include:
- Advanced stock option strategies
- Advanced hedging strategies
The wealthy often use advanced strategies like these in combination with others. They carefully weigh the costs vs. benefits in consultation with their advisors.
It’s critical to discover if the extra cost or extra risk is worth the extra protection and potential wealth-building power.
Essential questions to ask yourself include:
- Do I feel that the amount I have in bonds and cash is enough to help shield from stock market volatility?
- Am I missing out by not investing in additional advanced strategies for my portfolio?
- Do I feel confident that even something like buying in at the wrong time won’t destroy my finances?
- Are there financial professionals knowledgeable enough on this topic for me to bounce some ideas off them?