The "Four Pillars" of a Balanced Investment Portfolio

Every person's investment portfolio needs to have some sort of balance; however every person is different. For example, someone like Warren Buffet likely has much more of his investments in stocks than the average person, due to his immense knowledge and understanding of that segment. I tend to have more real estate, due to my knowledge and understanding of that segment. Regardless, there should be balance that works for YOU.

The Four Pillars of anyone's portfolio are:

1. Cash or cash equivalents - investments that can easily be liquidated into cash, such as gold, silver, jewellry, t-bills, etc.

2. Stocks, bonds, mutual funds, 401-k / RRSPs - these are investments that are meant for long-term holding, and are more difficult to liquidate. Primarily purchased through a stock broker or a financial analyst, the return you earn is fully dependent on the company or fund manager.

3. Insurance - this is one pillar many people overlook, but it's critical for your portfolio. Having life insurance is the most common policy, but there are lots of other insurance products that actually can pay you returns and build up some extra asset value, while you still own the policy.

4. Real Estate - the foundational pillar in the portfolio. Andrew Carnegie once said that 9 out of 10 millionaires made their money through real estate. That number has likely reduced a bit in more recent years, but most millionaires own more than just their primary home. And for most people, their home is their largest asset.

I suggest you talk to different professionals about the first three pillars... I have experience in all, but I am no expert. However, the reason you're here is because of Pillar Four, Real Estate, and in that segment, my experience is substantial. So check out more blog posts and videos on the webpages here, and if you want to reall dig into my skilset, click on "Services" and let's get started!