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Inflation affects everyone, but you might feel it more if you’re a renter.

As customers demand faster and faster delivery speeds, major retailers are investing heavily in their delivery services.

Ports across the country are booming as the Biden administration offers up large grants in an effort to upgrade infrastructure.

You may not be super new to investing, but is your portfolio mostly concentrated in one type of investment?

Perhaps it’s stocks, maybe you’ve snuck in some exchange traded funds, or ETFs, which allow you to invest in a basket of things. Whatever your portfolio looks like at the moment, the central question you should ask yourself is this: Is it diversified and balanced?

In the simplest terms, diversifying your portfolio means you don’t put all your eggs in one basket. That way, if there’s market volatility, your hard-earned money may be more protected, or that’s the idea, at least.

Diversifying has the potential to help you reach your financial goals faster. For example, you may allocate a portion of your investment budget to riskier categories, like growth stocks, which are companies that have a lot of growth potential. You then balance out that allocation with traditionally safer, lower-yielding investments like bonds. Again, not all eggs are in one basket, but some of those eggs could produce some juicy returns.

How you allocate your portfolio also has something to do with your phase of life, and what you’re trying to achieve.Younger people’s portfolios may be more geared toward high returns, while people closer to retirement may prefer investments that bring in a lower-risk, regular return.

What Different Asset Classes Can Offer You

The first step to diversifying is to understand all the different types of investments you may have access to. That’s essentially all asset classes are: a group of investment types with certain characteristics.

No doubt you know about stocks, or equities; they’re an asset class. You can invest in single companies, tracker funds that follow certain industries, or even the whole market. Many people who are invested in the markets also own bonds, or fixed income, which traditionally provide a lower-risk, and lower return.

If you feel less comfortable outside of these two, read on.

Money market funds are very liquid investments, which means they can be easily and quickly converted back into cash.

Commodities include oil, gold, agricultural products like dairy, or wheat. Different commodities are correlated with different economic factors. For example, demand for oil is related to global economic growth, as well as supply of the fossil fuel from oil-producing nations. Meanwhile, gold is a traditionally considered a safe haven asset that investors often flock to in times of market turbulence.

In real estate investing, you’re betting on rising property values, or generating income through rents. You can also put money into this category through real estate investment trusts, which are traded on the market. Real estate is traditionally less correlated to the market.

Diversifying your portfolio is important, but it’s okay to feel overwhelmed by just how much is out there. Did you know SoFi offers you access to certified financial planner professionals to plan for your future? Learn more about how to book your first consultation here.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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Deciding to spend your life with someone is a big deal, both emotionally and financially. After all, tying the knot means you will likely pool your incomes to create shared finances.

If that’s the case for you, it might be worth thinking about the costs associated with getting married together. Engagement rings can be expensive, for example, so if you’re planning to get hitched, have a conversation about what budget is right for you as a couple.

Once you’re engaged, the real planning begins. Maybe you’re getting help from your families in paying for your wedding. But there are hidden costs that are easily overlooked, such as rehearsal dinners, bachelor or bachelorette parties, and tips for staff at the end of the big day.

So how much does a wedding cost on average? Half of the people asked in a SoFi survey said they spent less than $10,000 on their ceremony and reception. Overspending on the big day was also the number one regret, with 15% of survey respondents wishing they had spent less.

What’s More Romantic Than Budgeting Together?

Coming up with a budget of how much you want to spend in total early in the planning phase can help you start married life off on the right foot.

Budgeting might not sound like the most romantic thing to do, but it actually kind of is: You’re taking each other’s financial needs and wants into account, and that will never stop being important in your life together.

Saving for your big day can be easier if you automate monthly transfers to a separate account to collect wedding funds. And if you pick a high-yield savings account, your money can make money for you while you continue to plan and save.

If you’re thinking about financing your wedding in other ways, be sure to weigh the pros and cons, and thoroughly check out all of your options, which may range from credit cards to personal loans.

Check out SoFi’s high-yield savings account if you’re saving for your wedding, or SoFi’s personal loans if you need a little more help to get there.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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