It’s best not to invest all your money in one thing. Diversification, or owning many different types of investments, is less risky and will smooth out the ride. “Stick with the basics (a mix of stocks, bonds, cash and real estate) and not what your friends are doing. Everyone’s situation is different,” says Dana Twight, CFP, founder of Twight Financial Education in Seattle. “Your employer retirement plan is often a good place to begin,” says Twight. “It has automatic contributions, allowing you to invest without being concerned about today’s news.” If you want to increase your investments or diversify further, look into passive income opportunities, such as rental property or peer-to-peer lending. “Investing in different asset classes helps you weather all the storms, floods and calm moments in between,” Twight says.
