When an unscrupulous stockbroker took Peggy Doviak's mother to the cleaners, Peggy did not just get mad - she changed careers. She became a CERTIFIED FINANCIAL PLANNER professional, vowing to ensure that what had happened to her mother would never happen to a woman again.
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Q. Peggy, I have always heard that I should diversify my investment portfolio, but I’m not completely sure what that means.
A. Most simply, diversifying a portfolio means purchasing multiple kinds of investments that respond differently to the same event. However, before you buy anything, you need to determine your risk tolerance. Many variables impact your risk tolerance, like time horizon, growth requirement, market experience, and other characteristics. Your risk tolerance can range from aggressive to conservative,...