52 Weeks to Prosperity is a book designed to help you prosper, and prosperity comes from understanding your financial situation and taking steps toward reaching your goals. In order to prosper, you have to understand the language of the world of finance, and 52 Things is your guide!
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,...