Outlook Money
One should spread investments across various asset classes like stocks, bonds, and alternative strategies to mitigate risks and enhance returns.
By allocating a significant portion to stable, diversified funds (core) while using a smaller portion for higher-risk, potentially higher-return investments (satellite), one can maintain a balanced portfolio.
Younger investors can afford more volatile stocks for growth, while older investors should focus on stable bonds for income as they approach retirement.
One should tailor the investments based on individual risk tolerance and financial goals, as there is no universal strategy.
Exploring options like pension plans and rental income to enhance cash flow and support diversified investment strategies can help in building a balanced portfolio.