Investing $500k is a great opportunity to build long-term wealth, but it also carries risks if not managed properly. When investing a large sum, it is wise to diversify across different assets like stocks, bonds, real estate, etc. to balance risk and returns. Key factors to consider are your goals, time horizon, and risk tolerance….
Allocate percentage to stocks based on risk tolerance
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Diversify stock holdings across sectors and market caps
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Invest portion in bonds for stability and income
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Consider income properties for cash flow
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In summary, with $500k to invest, creating a balanced and diversified portfolio tailored to your personal financial situation can optimize returns while minimizing risk.