Part 6/9:
Many mistakenly believe that diversifying before having a robust investment is a wise choice. However, without something substantial, diversifying merely means diluting focus and potential. The biblical wisdom from Ecclesiastes 11:2 advocates for spreading investments across multiple platforms due to the uncertain risks of the future.
There are several pathways to protection:
Fixed Investments (e.g., bonds or high-yield savings accounts) provide stable but low returns.
Variable Investments (e.g., stocks and real estate) yield higher returns but come with corresponding risks.
Indexed Investments act as a safety net, allowing for growth while ensuring that you do not lose capital.