One of the oldest fundamentals of investing is diversification. It helps to offset the many risks we take when we invest capital. We all try to diversify. however, here's the problem: when you diversify, it's true you could lose less, but you could also MAKE less! In fact, its almost guaranteed you will make less because those two-dollar-bets on the five horses that finish out-of-the-money dilute or even sink your gains on those that come in one, two, or three. This is why bucketing your capital into distinct and separate financial buckets, each with its own task and time deadline is so effective. Today, Steve will demonstrate how to diversify your holdings-- with bucketing-- to increase your income, lower your risk, and grow your money over time. MASTERING MONEY is on the air!
Back in the late 1980s, many retirees saw a huge opportunity in planting pine trees for lumber on acres of land in the Southeastern U.S. Even the California State Pension fund sunk several billion dollars into timberland. Afterall, with the big housing boom on the way in the 90s and 2000's, it seemed like a can’t miss idea—combining real estate and trees--what could possibly go wrong. Well, plenty went wrong. Today, we’ll review a fascinating Wall Street Journal report on exactly how the government got involved, and how many retirees lost their nest eggs. Then, Steve will reveal the SECRET of seeing the future and planning for it. A big show today that you DON"T want to miss. MASTERING MONEY is on the air!!