National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.
 

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning

 

 

Arrow pointing down.

INVESTMENT

 

5.

Introduction

 

5.1

Asset Allocation

5.2

Diversification

  

5.2.1

Stocks

5.2.2

Bonds

5.2.3

Money Market Investments

5.2.4

Mutual Funds

5.3

Risk

5.4

Learning Check

 

5.2 Diversification

After you decide on an asset allocation, the next step is to diversify your money within the different investment classes.

By putting your money in several different investments, you "spread the risk." To illustrate: rather than invest in one stock, you might invest in a variety of stocks. That way, if one stock performs poorly, it represents a smaller portion of your overall stock portfolio.

Before you can set an asset allocation and diversify your investments, you need to know more about the choices that are available.

Following is a brief overview of the basic investment choices.

 email to. Launch Course Glossary Launch Course Help Launch Course References Previous Page Next Page