Edward Smith, ChFC, CRPS, AIF

Hi Lavinia,

You have no idea how much an advisor likes to hear the correct question framed the correct way. What would a diversified portfolio look like for me? Awesome question, so many people ask, "What is a good investment?” It is not about one investment it is about what mix of investments and what percentage allocated to each category. Everybody is different and their risk tolerance is different. In my opinion a well diversified portfolio is invested in 7 to 12 categories; Large, medium and small cap stock both domestic and international as well as value and growth. Real estate, commodities, emerging markets as well as short and long in duration and high and low in quality bonds. With this current economic environment and the Feds printing money I would also include inflation protected bonds. Based on your age unless you are a very risk adverse person I would say a 70 % equities and 30% bonds portfolio could be appropriate for now. The key is to rebalance your portfolio at opportune times as well as slowly reduce risk over the years as you approach retirement. Most people make their mistakes by being too conservative when they are young and then once they become more comfortable with how the market works they tend to want to take on too much risk when they are older and do not have time to make up for a black swan type of event if it were to happen. Let capitalism work for you. Invest appropriately for your age and risk tolerance. Please feel free to contact me if you need an advisor.

Hi Tayna,

The answer is yes. Everyone else has already done a good job answering your question, especially Bob speaking from personal experience. Even before I started my investment advisory business I sold life insurance for years. I always advised couples to put some insurance on the spouse that did not work outside the home. Notice I said did not WORK OUTSIDE the home. I have been married for almost 28 years and there is no way I could replace what my wife does for our family.Take some time and sit down and figure out roughly what your husband would have to pay someone to do all the things you do. Forget about family that will help. Sure they will help but you don't want to be a burden on anyone. Please for your childrens sake consider buying some term insurance. Buy a term long enough that gets you until your children are through college.

Some people might say that if you have a small amount of assets or if you are a buy and hold type of investor you might be better off with a commission based representative. I can only tell you that when I left the commission world and became a fee based advisor I had never felt so liberated in my life. I am free from the need to sell anything. I am a consultant not a salesman. Before I could say I am being fair now I can prove it in writing. In my opinion use a fee based advisor. They are the most objective and you will not have to worry ever again if your advisor has some hidden agenda.