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Importance Of A Diversified Portfolio

Importance Of A Diversified Portfolio

February 06, 2019
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Despite evidence to the contrary, many people believe that investment success is dependent upon their ability to outguess the markets—entering and exiting at the most convenient times. However, history paints a different picture. Investing is a long-term process that has historically paid the most significant rewards to those adhering to a consistent and disciplined approach to investing.

What Is As A Diversified Portfolio?

Diversification means spreading your assets among different classes. Examples of the different classes are cash, real estate, stocks, mutual funds, and many others. Most people describe this as:

"Don't put all your eggs in one basket."

Why Diversify Your Portfolio?

There are three significant reasons to spread out all your assets in portfolios(1):

  • Minimize the risk by investing in different vehicles
  • Helps preserve capital by protecting savings and other assets
  • Helps generate more returns

For investors pursuing long-term goals, a well-diversified portfolio with investments allocated across different asset classes can help reduce the risk of a downturn in any one investment or asset class. That can potentially help you stay on track toward your goals while continuing to benefit from the power of compounded earnings over time as you remain invested through different market cycles.

Create A Diversified Portfolio

At ATL Global Advisors, our goal is to help you manage your portfolio so that you can live out your golden years in comfort and peace. With our comprehensive planning process, we can help you prepare for both life’s expected and unexpected circumstances. If you are interested in beginning your new plan or think your current plan needs a second look, email me at kevin.myers@atl-ga.net or call 770-800-2851 today. Or you can simply Schedule Our Complimentary Introductory Meeting!

*While diversification may help reduce volatility and risk, it does not guarantee future performance.

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