The Anatomy of a Well-Balanced Investment Portfolio

By Simon Cooper
August 19, 2020

Do you lie awake some nights worried about your current financial situation while staring at the ceiling other nights worried about your future? You’re not alone — not by a long shot.

The best way to protect your current and future wealth is to diversify your investment portfolio. This is where things get overwhelming and often confusing. Only two in five Australians understand the principle of investment diversification.

It’s always a good idea to know the basics of the instruments your money is depending on to grow.

It starts with the basics:

  • What are your financial goals?
  • When will you need your money?
  • What is your risk tolerance?

Your answers will be the foundation or road map for your investment plan. Once you’ve built your foundation, it’s time to make sure your portfolio is well-balanced.

Stocks, Bonds and Cash — Oh, My!The old saying of not putting all your eggs in one basket is as true in a portfolio as it is anywhere. Making sure you have the right mix of asset classes will allow you to ride the volatility of a market without the success or failure of one asset affecting the other.

Stocks, bonds and cash are the three major investment buckets. But, there are others like real estate, futures and commodities that all add to a well-rounded portfolio.

Stocks themselves are diversified in a well-rounded strategy and can include:

  • Blue chip
  • Growth stocks
  • International including emerging markets

Putting It into PracticeHaving the right team of advisors on your side can be the difference between a wobbly portfolio and a well-rounded one that sets you up for financial success. At Forward360, we never take lightly the great responsibility we have for helping build our clients’ futures.

Start with a complimentary consultation with one of Australia’s leading financial advisors. We help our clients with all their financial needs so they can enjoy carefree living sooner than they thought possible.It’s never too early or too late to live your dreams. We can help.” font_container=”tag:h4|text_align:left” use_theme_fonts=”yes”][/vc_column][/vc_row]

Simon Cooper

Co-Founder, Managing Director, Financial Adviser

Simon is a financial advisor who takes his work seriously. He ensures that all of his clients receive the best possible advice, so that they can reach and exceed their financial goals, both personally and professionally. Simon has been in the business for many years, and has a wealth of experience to share with his clients. He is known for being friendly and approachable, and always puts the needs of his clients first. Simon Cooper is an Authorised Representative of Reedy Capital Pty Ltd (AFSL No. 495539), Authorised Representative Number 1248807 and a financial adviser at Forward360.

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