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Step 1
The first and most critical step is to make the decision to take control of your investment portfolio diversification versus letting someone else control it for you. (Fund managers, investment advisers, etc.) Then, ask yourself this question:
"Who will ever have more of a vested interest in your future than you?"
This is a wake up call:
Are you aware that your 401(k) and IRA fund managers aren't ever going to share some of the best investment opportunities available with you? The same is true of many of our "trusted" financial advisers.
How can this be true?
The answer is: MONEY!
Your fund managers and advisers are only going to tell you about those investments that they can sell you and earn money (commissions) from. Think about that for a moment and let it sink in... -
Step 2
Let's say that you've decided to take control of your portfolio diversification. Next, you need to get familiar with each one of the investments that you currently have in your investment portfolio.
Sift through your records and document each investment and asset. How have they performed in the past? The present? What is the outlook for the future?
In other words, develop an intimate knowledge of where your money is invested and it's track record. -
Step 3
OK, now you've become familiar with your investment portfolio diversification and the various assets that you have invested in.
It's now time to challenge every one of those investments that you own.
Are they winning or losing? Are there better "alternative investments" out there that your fund managers and/or advisers haven't told you about? -
Step 4
Start educating yourself about alternative investments. Truly safe investment portfolio diversification, according to "Modern Portfolio Theory" (which the attached video defines), explains the necessity of having a mix of "alternative" investments and "traditional" investments in your portfolio to be secure. [The video will explain the difference between these two investment classes.]
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Step 5
Sell the dogs and invest in more promising alternative investments. "Fix your investment mix".
Always challenge yourself: "How could alternative investments such as real estate, commodities, precious metals, oil and gas, etc. help provide for more safe investment portfolio diversification?"
For additional information on the subject, please visit the link provided above next to my photograph "www.JohnHanlin.com"
