The majestic Egyptian pyramids have withstood the test of time. Some of them are over 4000 years old. That is the inspiration for how you should categorize your assets into your own “Investment Risk Pyramid.”

• Foundation (50-100%): This is your “war chest.” Exposed primarily to Inflation Risk only.
• Controlled (30-50%): This level includes professionally managed money. Exposed mostly to Market and to Interest Rate Risk.
• Aggressive (0-20%): Includes individually picked stocks. Usually exposed to Financial, Market, and Interest Rate Risks.
• Special Situations: Very special highly-monitored situations. May be exposed to all four Risks at once.

What’s next? Learn about asset diversification >>>