The Wealthy Wise Woman model to long term lifestyle security is to build a diverse portfolio that balances wealth creation and preservation.
There are three layers to this portfolio
1. Foundational assets. Assets focused on the preservation of wealth. They grow slowly over time, but never lose their value. They are there to ensure your lifestyle never drops below a certain level no matter what crisis is going on in the world. Some examples of assets in this layer are gold, property, special rider insurance and fine collectables.
2. Growth assets. These assets provide steady growth and income generating opportunities. Sometimes they can have outsized gains but they also carry some risk of loss. These assets are the most commonly discussed as they include equities, fixed income assets, royalties and working real estate.
3. Speculative assets. These assets are the most volatile, they can provide life-changing gains with just a small investment, but also carry the highest risk with many falling to zero. Some examples in this layer include private investments in companies, penny stocks, and cryptocurrencies.
A diverse portfolio has a proper allocation into each of these layers across a wide variety of assets and investment strategies.
The portfolio is reviewed and balanced at regular intervals to ensure it maintains its balance as the environment changes.
Does your portfolio include assets in all three layers?
1. Yes
2. No
3. I'd like to, but don't know how
If you're curious to find out how to:
> build a diverse portfolio with investment opportunities that are wider than just equities,
> grow and protect your assets in volatile times,
Send me a message, or put a comment below.
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⚡️ I am Susan.
⚡️Empowering women to make their own financial decisions for maximum confidence and peace of mind.
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