How to Diversify Your Retirement Portfolio

Many professionals have the dream that they will be retiring with a sizeable retirement portfolio. What many people don’t realize is that they can have more control on their portfolio than they thought. For instance, let’s say that you have a passion for currency or cryptocurrency, there are options for you to add to your portfolio. We’ll get into this a little bit more in a minute. Let’s take a full look at how to diversify your retirement portfolio with these following tips.

VETTING YOUR PROVIDERS

Knowing and understanding who your investments are, is important. You want to make sure that you are following all the laws and that your investments are legitimate. Investing with a cryptocurrency can be fun and exciting. With so many online avenues now accepting bitcoin, it makes sense to invest in something so young, yet so established and well known throughout the world. Bitcoins are used worldwide for many different kinds of transactions and are worth quite a bit in the trading market. Genesis Mining makes it easier to invest in bitcoins. Bitcoins make an excellent investment option. Their value is as high as the trust the community places in it and is accepted by many major corporations worldwide. In other words, the more people use it, the more value it will hold.

Make sure that you read reviews, speak with other clients, etc. In other words, do your due diligence. Make sure that what you’re investing in will have minimal mistakes, is cost effective, and will give you optimal returns and gains.

WHY YOU SHOULD DIVERSIFY

Diversifying your portfolio isn’t necessarily meant to boost performance, nor does it really protect you against losses. However, it does allow you to have different options within different investment types. According to investment companies and brokers, having a diversified portfolio can help offset some of the more poorly performing assets. Diversifying can help manage not only risk but also help avoid costly mistakes in the future. Having a well-rounded retirement portfolio ensures that you are protected and have enough assets to succeed with.

INVEST IN DIFFERENT KINDS OF FUNDS

Just because you like food, doesn’t mean you have to invest with all funds having to do with food. By avoiding similar stocks, you avoid creating risks. This means that you’ll be able to gain more or at least make even. The same goes for small-cap funds, it doesn’t necessarily mean that all small-cap values will give you the same result.

FIND LARGE CAP FUNDS FOR LOW PRICES

The more investors a fund has, the lower the price would be for your share. That means you can buy more and have a lower risk. When the entire fund or stock is sold you will receive your share. With large cap funds, you are able to reinvest as much as you’d like. Many of them are also categorized making it easier for you to decide which fund you’d like to invest in. For the most part, many large cap funds have a management team, which helps you maximize your earnings. It also takes out the guess work for you.

DIVERSIFYING IS NOT A ONE TIME THING

Diversifying your retirement portfolio is not a one-time thing. You need to do the following four also known as TPRR:

  1. Track
  2. Periodic Checks
  3. Rebalancing
  4. Reinvestment

These will ensure that your portfolio is performing at its best and giving you the returns you expect and desire. Staying on top of your portfolio, whether you’re handling it, an investment broker, or a specialized management team, it is important that these are done consistently and with full disclosure.

Whether you’re a new investor or a veteran investor, it is important to know that diversifying your retirement portfolio can help you gain the best results. Retirement is about enjoying what you’ve worked so hard for, and as such, it is imperative that the right choices are done for you. Talk to your investment team about your financial goals, and see how they can help you diversify and reach maximum returns with little risk.

 

3 Sustainable Investment Options

Saving the planet is pretty important for some people, and I’m guessing it’s at least a vague thought in your head. After all, you are reading a website called Sustainable Personal Finance.

But as we’ve argued in the past, there needs to be some sort of incentive for people to do the right thing. Governments have done a good job with this in the past by doing things like paying people to recycle, giving tax breaks for people who install their own solar systems or buy electric cars, or by encouraging research into promising new technologies.

It’s the same thing when it comes to investing. The object of that game is to make money; saving the world is a secondary (at best) goal. I guarantee any environmental thoughts go out the window when someone doesn’t have enough to afford to eat in retirement.

Fortunately, there are investments out there that allow environmentally-conscious folks to have their cake and eat it too. Here are three investing ideas that would look good in every tree hugger’s portfolio.

Renewable power

As technology has improved, Canada’s power generators have abandoned fuels like coal and even natural gas, choosing to invest in hydro, solar, and wind projects. These projects generate cash flow day one, and there will likely be plenty of demand for more of them over the long-term.

There are a few different companies in Canada that focus on renewable energy, and unfortunately for folks who don’t really like to pick stocks, no ETF exists that allows you to get broad exposure to the sector without having to buy individual stocks.

Four of the top renewable power stocks in Canada are Brookfield Renewable Partners LP, TransAlta Renewables, Northland Power, and Innergex Renewable Energy. I’m not entirely sure which one is best, so I’d just buy all of them, creating my own mini ETF.

General Motors

I know, the maker of some 10 million gas-guzzling cars per year doesn’t really seem like a very green choice. But hear me out.

General Motors knows where the future is, and is taking steps to ensure it’s in the lead when that time comes. It already introduced the Chevy Volt, an electric car which was met with mixed reviews. Some people loved their Volts. Others mocked the concept throughly. The next generation of electric vehicles called the Bolt come out soon.

General Motors has something like 4,500 engineers working on building engines that don’t run on gasoline. And many of its other engineers are working on ways to make existing engines more efficient.

General Motors isn’t alone with this investment. Its competitors are pouring many billions more into new technology, much of it going towards electric motors and other green-friendly initiatives. By investing in the sector, regular people are encouraging this research to continue.

CO2 Solutions

CO2 Solutions is definitely not for the faint of heart. You’re nuts for making a company like it a major holding in your investment portfolio. But it could also be a game changer.

The company sets up carbon capturing technology on things like power plants, oil and gas production, and cement and metal industries, which helps these polluters cut their carbon footprint. It then sells this carbon back to industries that need it, like greenhouses, fizzy drink producers, water treatment plants, and pulp and paper mills.

The company claims costs for their technology are 35-60% less than their competitors, with the added benefit of generating no toxic waste. Both private enterprise and governments seem pretty interested in the technology.

There’s only one problem. The company hasn’t really built any yet. It not only doesn’t make money, it doesn’t even have revenue.

That’s a huge problem.

It does have enough in the bank to last it a while longer, and both the Alberta and Quebec governments have given it grants towards building pilot projects in both provinces. So it is making progress, but still remains an incredibly risky investment, albeit one with huge upside.

Conclusion

You don’t have to sacrifice investment returns by going green. Each of these ideas has considerable upside potential, although with varying degrees of risk. As always, do your own research before investing.