Diversification: What You Need to Know
In a volatile market investors should take advantage of carefully planned asset diversification. How you diversify your investments will vary based on your stage in life, goals, and comfort with risk. There are many factors to consider, but don't worry. You don't have to navigate this alone. Your Thrivent Financial representative can help you develop a personalized strategy.
The term asset diversification refers to positioning your portfolio to take advantage of different investments coming into, and falling out of, favor at different times. However, while diversification can help reduce market risk, it does not eliminate it. With a portfolio diversified among various investments it is possible for money to be invested in the areas of the market that are considered to be undervalued. The result of this is that you could potentially have a larger stake in those investments when the market makes its upside correction. This approach is taken in hopes it will enable you to buy low and sell high per the old adage.
Who Diversifies?
Many people diversify their investments in different ways and with different goals in mind. Generally, investors in their 20s, 30s and 40s, who are looking to grow capital, may want to keep a larger portion of equities in their portfolios. Whereas, investors in their 50s, 60s and 70s who are concerned with saving and protecting funds might diversify among more conservative, but still growing, funds.
Many factors come into play. Your stage in life and goals are unique to you and deserve individual attention and consideration. But you don't need to navigate this alone.
Contact a Thrivent Financial representative. He or she can help you decide what strategy will help you attain your goals. Partnering with a representative may just be the best investment you ever make.
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