Article Of The Week
"Investing On Autopilot With These 4 ETFs"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers.
When it comes to investing there are multiple ways to do so. ETFs, mutual funds, individual stocks, Cryptocurrency, etc. Especially since there are thousands of companies on the U.S. stock market.
But unless you’re Warren Buffett or some other billionaire, it’s likely you don’t have that kind of money to spread across the entire investing universe. And honestly, some of us just don’t have the time to conduct research to invest in individual companies.
Luckily, ETFs provide instant diversification since they typically hold hundreds, or sometimes thousands of companies.
While this is great, investors should be careful of over-diversification, or what Peter Lynch likes to call diworsification. There are many ETFs who own similar stocks so you should be careful when selecting multiple ETFs for your portfolio. Otherwise, you are to going to get a lot of overlap.
Your selection process also depends on your investment goals. As a dividend-focused investor, my goal is income while also seeking growth, or capital appreciation. So, a balance of income & growth.
It’s always great to diversify into other asset classes like gold & silver, the previously mentioned cryptocurrencies, or even investing in companies outside of the United States. Moreover, if you’re an investor who doesn’t have a lot of time or energy to put into investment research, then consider using this portfolio of four ETFs to give you the total package.
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