Published: July 20, 2026
Where people get into trouble is when they are overly concentrated in a few positions. Whether that is Bitcoin, ETFs, Mutual Funds, Stocks, Bonds or Cash. Too much in any of these removes your diversification protection.
I see so many investors online lament about buying Bitcoin at over $100,000 and now they have lost a signficant sum if they were to sell today. Bitcoin is priced at around $65,000 today. That is a loss of 35% or more depending on their purchase price. If they put a majority of their investing dollars into Bitcoin, then they just learn what a bad decision that turned out to be.
Another way people make mistakes with ETFs and Mutual Funds are buying putting all their money into a Target Date Fund like a 2035 Fund. The thinking is that this is simple, because the fund company manages this from now until the year 2035.
Personally and professionally, I do not like these funds, because you can do better with a properly invested portfolio. A case in point, a lot of Target Date funds returned 11 - 14% in the last 12 months. While a properly invested portfolio may have return over 20% in the last year. The point is that you are missing out on upside returns with Target Date Funds. You may want to rethink this approach and hire a competent Investment Adviser firm like mine.
You do not want to build your investment portfolio willy-nilly. You need a long term strategy that matches what you are trying to achieve. Your success rate will go up when you have a diversified investment plan and portfolio. Where you get hurt is when you are overly concentrated in a few investments, or you are choosing too many conservative investment options, like Target Date funds.
Important:
Would you like to discuss whether you portfolio is right for you? Call Rick at (904) 460-2700.
This article is for informational purposes only and does not constitute legal advice, personalized investment or tax advice. Please consult with your legal or tax professional before making any decisions.