When you buy an investment, you have to plan when to get in, how much to invest, and when to get out. Each of these items is important. Let’s talk about how much to invest.
Back when I had my brokers licenses (series 7 and 63, which let me sell pretty much any financial product except annuities and life insurance) I found out the obvious. You should never put all your eggs in one basket. You should invest across industries and asset classes and should not put more than a specific amount in any one idea.
Most financial advisors I have talked to suggest no more than 4 or 5% investment in any one stock or financial product (mutual funds can be a different animal because they are more diversified).
Tomorrow I will talk a little about when to get into an investment. If you have any general questions, call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net but more specific questions should be answered by a financial advisor.
You can check with the professionals on my website in the resource section:
https://briantstonercpa.com/Resources.html
You can count on us to count for you!