How to Eliminate the Two Biggest Sources of Financial Stress
The Art of Manliness
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Diversification Reduces Investment Risk
Putting all your money in the S&P 500 index fund and relying solely on stock market returns may lead to stress due to market volatility. The stock market's volatility can cause significant fluctuations in your investments, impacting your net worth. By diversifying your portfolio with stocks, bonds, gold, cash, and real estate in 20% proportions, known as the 'awesome portfolio,' you can achieve nearly the same returns as the stock market but with half the risk, reducing the stress associated with major market downturns.
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