The Deal With Diversification | Pros and Cons of Investing Your Assets

In the age of different investment options coming at you from all different angles, it’s a timely question to wonder what is the right option, why should you be doing this, and what are the risks and benefits? Keep reading to learn more about diversification and the difference it can make on your finances.

What is diversification? 

Diversification is dividing your assets, these can range from 7 to 8 different assets (including things like stocks or bonds, which can then be broken down and diversified as well.)

What it comes down to is not having everything in one spot - in this case, don't put your eggs all in one basket. 

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What are the pros and cons of diversification? 

A common con that can come along with diversification is becoming TOO diversified.

It's important not to spread your assets too thin, as it's hard to reap the benefits that might come along with one if you have too many on your plate.

However, it is beneficial to have your assets in different areas, as it can allow for more growth potential.


How do I know what investment options are right for me?

One of the greatest benefits of working with a financial planner on your investments is that we are not emotionally tied to your money. Now, this does not mean that we are going to ignore your personal financial situation, it means that we are going to remove that barrier of potential loss, but great potential gain that could be out there for you. 

 

We are also here to help you avoid any traps that have happened within the market. We have seen times where investments have led people to be sinking fast, and want to prevent that for any of our clients. We are here to serve as calm advice and rationalize any feelings that might come along with a falling or rising investment. 

 

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With AO Wealth, we want to make sure you have someone who can help you help yourself to stay accountable and consistent. Our online portal allows you to see your goal in progress and where your finances are at your stage. Money and spending can sometimes feel like it's hard to visualize and manage, so this is a great tool to let you remember your goals, where you started, and where you are headed. 



Advisory services are offered through A.O. Wealth Advisory, LLC, a registered investment adviser.


Financial Planning, Investing, Investment ManagementAdam ObrechtCertified Financial Planner, Investment Strategies, Retirement Planning, Risk Management, Competent Investments, Financial Budgeting, Des Moines Financial Advisor, When to hire a financial advisor, What does a financial advisor do, How do I know when to work with a financial advisor, Iowa Financial Advisor, Donating, Decision, CPA, Fiduciary, New year, New Year's Resolutions, Goals, Goal Setting, Diversification, Assets