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Finance Friday: 5 tips to help you diversify your investment portfolio | HOUSTON LIFE | KPRC 2 - YouTube
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welcome back it is truly
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an interesting time to be an investor
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and our next guest wants to help us make
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the best decisions
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to keep our finances as diversified as
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possible
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certified financial planner and
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president of shekiba capital trevor
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shakiba has
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five tips to help hey trevor happy
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friday and happy astros home opener
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yeah i know you're excited i know the
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shirt's great okay well let's talk about
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this making sure that we really are
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diversified
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and let's just jump right in how do we
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do that yeah so that's that's
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the question and i really did a part
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one last week i had so many comments and
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so many people reach out to me
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i thought let's do a part two and go a
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little bit deeper
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and i think the first thing that you
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have to ask after everything that's
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happened in 2020
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is what happened because right now
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the market is actually flat from january
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1. a lot of people would be shocked by
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that a couple days
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ago represented by the s p 500
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it was positive year-to-date but but
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just
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look back and ask did my portfolio go
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straight down with the market and
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straight back
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up was it less volatile because if it if
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it wasn't less volatile meaning if the
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market was down
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40 and you were down 40 instead of being
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down 20 or 15
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you're really not diversified
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interesting
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another indicator that someone might not
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be diversified trevor
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is you want us to really analyze how we
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responded this spring in march and april
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if we panicked if we ran out to buy gold
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and ammunition
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and all of these things that people do
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uh could that
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indicate a problem yeah that's a big
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problem because that's the biggest
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mistake most people make is they let
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emotion
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dictate what decisions they make with
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their investments so look everything hit
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the fan back in march and april
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it was crazy trust me very volatile
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unprecedented so so like you said did
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you did you panic
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did you sell everything did you lose
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sleep um and if you did those things
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you're probably not diversified enough
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and so that's my point there
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is pause and look back and see how you
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reacted not just your investment
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portfolio but how did you do
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and let's talk about the risk portion of
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this and this is really interesting
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because you talk about this in risk
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tolerance by saying
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are you comfortable with the amount of
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risk that you had
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yeah exactly and so a lot of people uh
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they'll recognize
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they they checked off a few boxes when
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they went to their new job to figure out
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what their risk tolerance was
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but we don't spend enough time talking
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about this just checking off a few boxes
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and saying
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hey i'm moderately aggressive is
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probably not thinking about it enough
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because again if you just went through
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march and april and you were down 30
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the market was down 35 and then you
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panicked
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you don't have the right uh risk
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tolerance it's not a line so my
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recommendation here is to think
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a little bit more deeply look at the
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worst case look at the best case look at
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what's most likely but you have to be
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comfortable with what that best case
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scenario could be
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so you're not panicking when it happens
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and trevor
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covid aside i mean the drama of the last
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few months aside typically during an
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election year
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we see a lot of weirdness and volatility
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in the market so
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what's your message if someone is
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thinking i don't know maybe it's time to
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reallocate
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right now what advice do you have for
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them
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well i think that's a great point and
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now is the time to do it because we went
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down so quickly we're basically back
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where we were january one
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now is the time to really consider those
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things and potentially reallocate
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and my point here is that we're not out
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of the woods
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2020 is not over we still have an
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election coming up
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uh tensions with china might be
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escalating so
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be careful don't think that we're
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completely out of the woods and make
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sure take the time now to all the
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viewers to get your allocation
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and risk tolerance aligned with your
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investment portfolio
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these are all such great tips let's talk
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about this next one because you say
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don't forget about alternative asset
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classes what do you mean by that yeah so
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my point here is that you don't want all
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of your investments just to go
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up with the market down with the market
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basically wherever the market goes
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that's where your account balance is
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going
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you need other types of investments that
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can provide downside protection
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and reduce your risk so those would be
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things outside the market
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like gold like precious metals like real
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estate
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that are going to provide that that type
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of diversification
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so uh you know if you're just going up
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and down with the market
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you know you're not really diversified
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so think through that
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we talked about this last week get a
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second or third opinion and make sure
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you're prepared now for the rest of 2020
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and beyond
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trevor we've got less than a minute left
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but i i know that some of our viewers
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uh are maybe aggressive investors i
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would guess that most of our viewers
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are not right that this is almost like
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speaking another language for them maybe
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some people have a 401k
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that's just sort of like sitting there
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so before we let you go today what's the
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one thing that each one of us can do to
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strategize and ensure
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we're making sound decisions in the
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market well i think you need to look at
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your mix
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and make sure that you don't just have
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four or five mutual funds you think
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you're diversified but they're all
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equities or stocks or they're all small
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cap
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you're not diversified and you're way
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too aggressive than maybe what you
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should be and the other point
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that i make here derek is that where are
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you at
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in your timeline of what you're trying
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to achieve if you're one year away from
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retirement
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and you're 100 in equities uh we've got
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a big problem because something like
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you know three four months ago could
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happen so i would just recommend
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if you're not comfortable find a
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certified financial planner
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reach out get a second or third opinion
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and let them
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guide you to get that right balance and
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they can save you a boatload
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in the long run trevor thank you so much
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you bet ghost rose ghost rose have a
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great weekend
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and in the meantime if you would like to
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connect with trevor you can visit
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chiquitacapital.com
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