Experiment with 5% of your investment portfolio | by Destiny S. Harris | Sep 2022


3 avenues to explore

Photo credit: RODNAE Productions

If you have a low tolerance for riskier or more volatile investments, start investing only 1-5% of your portfolio.

The reason you should always engage in risky investments is to diversify your portfolio.

Aggressive, volatile and risky investments can pay off big. If they drop, they won’t hurt your portfolio as much since only a tiny percentage of your portfolio is allocated to these types of investments.

Some people can afford to invest a large percentage of their financial portfolio in risky investments, but many might not because of limited income, fear, conflicting goals, or approaching retirement age. retirement.

Anyway, I even told my mom that she needed to have a small percentage invested in one of the three avenues so that a small percentage of her portfolio would work a little harder in her name.

If you don’t believe or understand the purpose of digital currency, that doesn’t mean you should avoid the topic altogether. I was exposed to cryptocurrency and blockchain technology in 2018, but presto ignored it until 2021.

I learned a valuable lesson: dig deeper to dispel any confusion and ignorance on the subject when something doesn’t make sense to me. The more you learn about something, the more informed decisions you can make about it.

If you think of cryptocurrency and blockchain technology, these are tech stocks at their core. It’s a new technology.

Think Apple, Google and Amazon. When they were first introduced in America, nobody gave them much thought, but a few early adopters did and then cashed in on their investment.

Will all cryptocurrencies work well? No. Just as most businesses fail, only a few succeed.

If you can’t get into physical real estate or don’t want to, try REITs.

Because of REITs, I am an investor in multiple properties (commercial and residential) across the country.

REITs are real estate investment trusts that allow you to build equity and collect dividends from real estate investments that other people also contribute to.

The stock market is not the only method of investing to explore. There are many other avenues such as REITs, private equity, and crypto markets.

Have you ever heard of those techies who invest in the company they work for before the company goes public?

I knew a guy who did this: he stayed with a company for a few years until it went public, acquired significant equity, then cashed in when the company went public. He did this many times and made a fortune.

There are other ways to access private equity, but this is one avenue – through non-public companies.

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