Because your money deserves a plan that doesn’t stress you out.
Let’s talk about something that sounds more complicated than it actually is: diversification.
Now, I know what you might be thinking:
“That sounds like something for Wall Street guys in suits—not regular people like me.”
But here’s the truth: you don’t have to be a finance genius to invest wisely. You just need a plan that keeps things simple and protects your money from doing something dumb—like disappearing.
The Problem: We Want to Invest, But We Don’t Want to Mess It Up
Most people want to grow their money. They want to set their kids up for success. Maybe retire early. Maybe take that dream trip to Italy. But they also don’t want to lose everything because they picked the wrong stock—or left their savings sitting in a checking account earning next to nothing.
So what do we do?
We freeze.
We overthink.
We wait until we “know more.”
And our money just…sits there. Doing nothing.
Here’s the good news: you can invest smartly without overanalyzing everything. And it starts with a simple word:
Diversification.
What Is Diversification (Without the Jargon)?
Imagine you’re throwing a birthday party, and you order only one kind of pizza. Let’s say…anchovy and pineapple.
Now imagine your guests show up, take one look at the pizza, and decide to leave. Ouch.
That’s the risk of putting all your money in one place. If it flops, the party’s over.
But if you order a few different pizzas—some cheese, some pepperoni, maybe a veggie—you’ve got something for everyone. That’s what diversification does for your money. It spreads it out, so one bad bet doesn’t ruin the whole thing.
Learn more about the basics of diversification from Investopedia
The Solution: A Simple, Stress-Free Way to Diversify
Let’s break this down into three basic moves you can make today to diversify your investments without getting stuck in analysis paralysis.
1. Start with a Mix of Assets
Think of your investments like a team. A well-diversified team has different players with different strengths. You wouldn’t build a football team made entirely of quarterbacks. You need linemen, receivers, and a defense too.
Here’s how that plays out in your portfolio:
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Stocks: These are your growth players. They’re the wide receivers trying to score big. Stocks have the potential for high returns over time, but they can also be volatile. That’s okay—they’re designed for the long haul.
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Bonds: These are your dependable, slow-and-steady team members. Think of them like the offensive linemen. They don’t get the spotlight, but they provide stability. When stocks are having a rough day, bonds help cushion the blow.
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Cash or cash equivalents: This is your bench. It doesn’t do much growing, but it’s available when you need it. Think of it like having a little savings tucked away to cover an emergency or jump on an opportunity.
You don’t have to guess at the right balance. Many platforms (including ours at Mostt) offer risk-based portfolios where the mix of assets is chosen for you based on how comfortable you are with market ups and downs.
Want to play it safe? You’ll get a heavier mix of bonds and fewer stocks.
Looking for long-term growth? Your mix will lean more heavily on stocks.
Check out this asset allocation guide from Vanguard
The key is: you’re not putting all your eggs in one basket.
2. Choose Funds Over Individual Stocks
Picking individual stocks is like betting on a horse race when you’ve never been to the track before.
It might be fun, but it’s a gamble. Even professionals who do this for a living get it wrong. A lot.
That’s why diversified funds—like index funds or ETFs (exchange-traded funds)—are such a game-changer.
Here’s why:
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They give you instant diversification. When you invest in a fund, you’re not just buying one company. You’re buying a little slice of hundreds, sometimes thousands of companies all at once.
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They tend to perform well over time. Sure, the market has ups and downs. But historically, broad-market index funds have delivered solid returns for long-term investors.
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They’re low-cost. Unlike fancy mutual funds with high fees, many index funds and ETFs have low expense ratios. That means more of your money stays invested and keeps growing.
Explore index funds from Fidelity
So instead of stressing over whether to buy Tesla or Apple or Amazon, you can just buy a fund that includes all of them. Easy.
3. Automate It and Forget About It
This might be the most important piece of the puzzle.
The best investors aren’t the ones who time the market perfectly. They’re the ones who invest consistently, month after month, no matter what.
That’s why automation is your best friend.
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Set up automatic contributions. Whether it’s $25 a month or $250, set it and forget it. Investing regularly smooths out the ups and downs of the market and helps your money grow steadily over time.
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Avoid emotional decisions. When the market drops, it’s tempting to panic and pull your money out. But automation helps you stay the course. You keep investing when prices are low, which sets you up for gains when the market rebounds.
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It frees up your brain. You’ve got enough on your plate already. Automation means one less thing to worry about, and one more thing working behind the scenes for your future.
Read about the power of automated investing from Morgan Stanley
Pro tip: Align your automatic investment date with your payday. That way, it feels seamless and doesn’t throw off your monthly budget.
Real-Life Example: Diversification in Action
Let’s say you open an account with Mostt. You choose a moderate risk portfolio, which includes:
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60% stocks (spread across U.S. and international companies)
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30% bonds
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10% cash or short-term assets
You set up a recurring contribution of $50 a month. That’s it. You’re done.
Over time, that money spreads across hundreds of different investments. Some go up, some go down, but overall, your portfolio is balanced, and your risk is managed.
You didn’t need to read five books or refresh stock charts every day. You made a smart decision once, and let it run.
You Don’t Need to Be a Genius—Just Consistent
People think successful investors are just smarter than the rest of us. Not true.
They’re just more consistent.
They diversify.
They don’t panic.
They invest steadily.
And they let time do the heavy lifting.
You don’t have to obsess over market trends or predict the future. You just need a system that works—and the discipline to stick with it.
If you can:
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Order pizza for a group
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Set up a monthly bill
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Choose between mild or spicy salsa
…you can diversify your investments.
So, What’s the Next Step?
If you’ve been waiting for the perfect time to start investing, this is it.
Not because the market is high or low—but because the sooner you start, the sooner your money starts working for you.
Start small. Choose a diversified portfolio. Automate your contributions.
Then go live your life.
You don’t have to overthink it.
You just have to begin.
Want help getting started? Check out Mostt and let us build a custom portfolio for your family’s future. Because when it comes to your kid’s future, we’re doing the Mostt.
