In this episode of Blue Collar Wealth presented by Stone House®, join Bob Brown, CFP® and Larry Alderson, CFP®, as they talk about how to balance aggressive and conservative investment strategies and the importance of diversifying your portfolio.
Let’s address the common misconception that being conservative with investments is always safe. While conservatism can prevent immediate losses, it can also lead to significant purchasing power erosion over time, especially during periods of sustained inflation.
There are also pitfalls of being overly aggressive with investments, such as concentrating wealth in a single stock. This strategy can lead to devastating losses if the company faces hard times. For example, during the 2008 financial crisis, many individuals suffered substantial financial harm due to over-reliance on bank stocks.
A portfolio should not be entirely conservative or aggressive but should aim for a balanced approach to mitigate various risks.
At Stone House, we specialize in helping our clients build financial security and that priceless peace of mind that allows for greater happiness in retirement. Request an appointment with a Stone House Advisor to get started.
Thanks for watching!
We’ll be back next Wednesday with a new episode, so stay tuned.
Time stamps:
🕒 00:00 – Intro
🕒 01:30 – Conversative Investing
🕒 04:59 – Downfalls to Conversative Approach
🕒06:35 – Past Experience
🕒09:21 – Balance
🕒09:36 – Risk
🕒11:35 – Stone House Flex®
🕒13:51 – Aggressive Investing
🕒15:35 – Passive Investments
🕒15:55 – Small Business
🕒18:38 – Investment Flexibility & Diversity
🕒20:38 – Balance & Diversification
🕒21:43 – Outro
Disclosure:
The information provided herein is for informational purposes only and should not be construed as investment advice, recommendation, or an offer to buy or sell any securities. The views expressed are the author’s own and do not necessarily reflect the official policy or position of Stone House Investment Management. This content is not intended to provide, and should not be relied upon for, financial, accounting, legal, or tax advice. You should consult your own financial, tax, legal, and accounting advisors before engaging in any transaction. Past performance is not indicative of future results.
