Scott Tominaga Advice on 3 Major Points to Consider for Making the Right Investment Decisions

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The market is highly volatile, and there are a lot of things happening over the last couple of years, which attract more investors to put their money into unconventional investment vehicles too for better returns. In the midst of all these, you may be wondering whether it is time to change your investment portfolio. In fact, technical yet. You need to think of building a balanced investment portfolio by considering the new-age investment avenues too for balanced return overtime.

No advisor will be able to give completely foolproof advice as to how to manage your portfolio in a volatile market. However, it can provide some pointers which you can analyze in light of your personal situation to make decisions. Here are a few things you may consider before making any investment decisions.

  1. Build a financial roadmap

Before you plan to make any investment, always try to take some time out and take a close look at your financial situation. This is more important if you are inexperienced in making financial plans for yourself. The primary step in building a financial roadmap is to invest successfully by figuring out the risk tolerance and financial goals. You may also take the assistance of any financial advisor to do this.Scott Tominaga is an expert financial advisor looking for help ranging from small to hedge funds.

  • While taking up risks, evaluating the comfort zone also

Any investment is risky up to a certain degree. If you plan to purchase real estate, invest in stocks, mutual funds, or bonds, everything has its own share of risks, and it is important to understand these before getting in. Unlike the FDIC-ensured bank’s deposits and the regulated credit unions, the money you may invest in securities may not be insured federally. So, there are also chances that you may sometimes lose your principal. The reward of taking up this higher risk for a longer period is a greater possible return.

  • Consider the right mix of investments 

The asset categories and returns from investments many fluctuate based on different market conditions, so the investor must have a balanced portfolio to balance the results. Different market conditions may cause different impacts on the asset categories and also may cause other asset categories to give a poor return. So, by investing in various asset categories, you are reducing the risk of money loss, and also, you will be in a position to counteract y any adverse impact on your portfolio with the right mix of investments.

 The right mix will save you from any complete breakdown in terms of stocks, bonds, and cash investments.

Considering all the above, Scott Tominaga suggests that one critical way to reduce the investment risk is to diversify your portfolio. As the saying goes, ‘do not put all the eggs in one basket.’ By choosing the right investment vehicle within a specific category, you can try and limit the scope of losses and also stay high in terms of market fluctuations with assured returns without sacrificing the scope of potential gain.

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