All articles tagged with #investment diversification
Izzy Englander sold a 15% stake in Millennium Management, valuing the firm at $14 billion, to diversify ownership and support succession planning, involving institutional and high-net-worth investors to ensure stability and future growth.
J.P. Morgan warns that the US is 'going broke slowly' due to rising national debt and uncertain revenue streams, with long-term risks of faster deterioration if political decisions worsen the fiscal situation, prompting investors to diversify portfolios.
Investors are advised to diversify away from high-risk AI stocks by considering non-tech companies with low correlation to AI, such as Johnson & Johnson, eBay, and Altria, which offer stability, growth potential, and attractive dividends amid market shifts.
President Donald Trump signed an executive order to expand access for 401(k) investors to alternative assets like private equity and real estate, aiming to improve retirement outcomes and diversify investment options by prompting regulatory reviews and revisions across federal agencies.
President Trump is reportedly preparing an executive order to expand access to private-market investments in 401(k) retirement plans, potentially allowing investments in private equity, real estate, and hedge funds, which could diversify portfolios but also carry higher risks. The move is still under review, and some firms are already developing products to include private assets in retirement funds.
Cryptocurrency, including Bitcoin and stablecoins, is increasingly integrated into mainstream investment portfolios and retirement accounts, driven by favorable political and regulatory shifts. While small allocations (1-2%) may enhance diversification and returns, the widespread adoption of crypto assets poses significant risks, especially as their value can be highly volatile and interconnected with traditional markets. Investors should remain cautious about the growing influence of digital assets in their financial planning.
Building a dividend portfolio from scratch involves focusing on quality, sustainable dividend growers rather than high-yield, high-risk options. Starting with ETFs can provide balanced exposure, and adding well-researched individual stocks can enhance growth, income, and reduce risk. The strategy emphasizes long-term stability and diversification, making it suitable for investors seeking consistent returns.
In their 50s, people should avoid the mistake of thinking their financial situation is set in stone and consider securing long-term care insurance, increasing 401(k) contributions, and diversifying tax buckets. Long-term care insurance can help cover rising care costs, while increasing 401(k) contributions by 1% annually can significantly boost retirement savings. Diversifying investment accounts by adding money to a taxable brokerage account is also recommended to minimize tax implications in retirement.
Personal finance expert Jade Warshaw emphasizes the importance of planning for retirement to "thrive, not just survive" in later years, highlighting the need for investing in 401(K)s, Roth IRAs, and diversifying investments. With concerns about potential cuts to Social Security benefits, she recommends taking Social Security at 62 and investing it for a better return. Warshaw's advice comes as a growing number of Americans struggle to save for retirement, with the median U.S. household reportedly $470,000 short of what they need.