Michael Opp discusses properly diversifying a portfolio.
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-michael-opp-founder-of-opp-financial-their-unique-approach-to-portfolio-diversification/
Michael Opp highlights the importance of properly diversifying and managing risk. Michael discusses the need to have a portion of the portfolio that is considered “must money” – money that cannot afford to be lost. This money should be invested in assets that offer guaranteed rates of return and minimal risk. On the other hand, there is a portion of the portfolio that can tolerate some level of risk in exchange for potential gains.
The key to proper diversification lies in understanding the different categories of investments and determining the right investment to accomplish specific goals. It is not enough to simply have a mix of mutual funds and bond funds; investors must ensure that their investments align with their risk tolerance and financial needs. For example, owning bonds directly may offer less risk than investing in a bond fund, as the latter carries additional risks.
Dynamic risk management is also highlighted as crucial in adapting to changing circumstances. Life events, such as job loss or unexpected expenses, can impact an investor’s risk profile and necessitate adjustments to their investment strategy. Regular reviews with a financial advisor can help ensure that the portfolio remains aligned with the investor’s changing needs and circumstances.
In conclusion, properly diversifying and managing risk involves more than just spreading investments across different asset classes. It requires a deep understanding of risk, clear communication with a financial advisor, and the flexibility to adapt to changing circumstances. By implementing a true diversification strategy and practicing dynamic risk management, investors can better protect their assets and navigate the complexities of the market with greater confidence.
Michael said: “I realized there’s only two types of diversification. Diversification is no risk. And, that’s where we start with our clients. This money you cannot lose. We look at the asset classes, they’re guaranteed, principal guaranteed, maybe your return guaranteed, and then your risk money. So that’s where diversification ought to be in clients’ minds today.”
Video Link: https://www.youtube.com/embed/O22UtXdS3qI
About Michael Opp
Michael has been working in wealth management for over 25 years. He holds a Series 65 license and Insurance license. As a Fiduciary, he has provided financial services to business owners, families, and individuals. Michael has access to a wide array of financial assets. Enabling him to successfully meet the financial planning needs of his clients while building long-lasting, meaningful relationships with them.
Michael received a B.S. in Business Administration and a minor in Economics in 1992. Michael’s belief in being a well-rounded individual, allowed him to compete in college football and track at the University of Redlands in California. He continued to compete in the track and field circuit until just after the 1996 U.S. Olympic Trials. This experience compelled him to give something back to his community. Michael coached high school, youth football, and track and field for over 17 years. He also has been married to his wife, Tamalynn since 1996. They are proud parents of three children Brady, Lance, and Elena.
Learn More: https://www.oppfinancial.com/
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Advisory services offered by Wealth Watch Advisors, LLC. All other services are offered through Opp Financial Group, LLC. Wealth Watch Advisors, LLC and Opp Financial Group, LLC are not affiliated.
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