When it comes to making sound investments, one thing that financial moguls and advisors can all agree upon (and do recommend) is that it’s important to diversify your portfolio—to make several different kinds of investments simultaneously.

It’s a simple as that, but not necessarily as easy as it sounds. Diversification requires a fair amount of knowledge, savvy, patience and skill. But, it is possible to obtain all of these things if you’re willing to put in the work.
If you’re looking for five ways to diversify your portfolio, here are some ideas.

Quality not quantity. Some people mistake diversification with having a lot of investments. The key is to have several different investments, not a ton of the same kind. In order to know which ones will work best for you, it’s vital to understand how each kind of investment brings about a different set of results. Stocks will help your portfolio to grow; bonds will assist you in bringing in income; cash gives you stability; international investments give buying power in the worldwide marketplace and real estate provides a protective hedge in the sense that it has the ability to continue rising, even if/when stocks decline.

Know what to put where. The next thing that you must do is decide what money to put into which investment. In the order of priority, place money in your cash category. This is for emergency situations and to help you in reaching your shortest term goals. Secondly, a traditional formula that is oftentimes applied with investments is to subtract however old you are from 100. Whatever that number is, that is the percentage that you will put into stocks; the remaining portion is what you will put into your bonds. Invest about 15% of your stock amount into international investments and 5% of the stock and another 5% of the bond portions into your real estate.

Purchase mutual funds. Once the first two steps have been completed, it is then time to diversify once more. If you don’t have at least $250,000 to invest, the most cost-efficient way to do this is to purchase some mutual funds. Basically, the purpose of a mutual fund is to put some of your money in with a pool of other investing individuals so that you can buy more in the investment categories that we have previously discussed. Many financial investors recommend purchasing what is called an “index fund”. This is a purchase of all the shares that are found in one particular index.

Keep your risk and return in check. Although the point in diversification is to keep you from having to experience extreme losses, there is no way that you can make an investment for the purpose of making a return without entertaining that some risk is also involved. Keep in mind that whatever investment causes you to reduce your risk, that will also have an effect when it comes to reducing your return. Therefore, in order to see a good return, be open to taking a bit of a risk (a financially sound risk, but a risk nonetheless).

A word about gold investments. If you’re thinking about investing gold to a gold dealer, something to keep in mind is that it has recently been reported that gold has settled at a low for a third session in a row. Bottom line, of all of the kinds of investments to make in this season, one to do some serious research on would be the gold marketplace.

If there was a bottom line statement that could be made about why there’s a need for liability insurance, it’s simply this: People find all kinds of reasons to sue someone and so it’s a good idea to be protected, no matter what.

Now, if you would like to explore this matter even further, there are many reasons why not only doctors and lawyers should have liability policies. Suppose you’re a freelancer and someone thinks that you plagiarized their material? (That’s why Copyscape is a great tool to use beforehand.) Or perhaps you’re waiting on an investor to pay you so that you can pay the vendors that you owe—the ones that are tired of waiting for payment and decide to file a judgment? These are just a couple of examples of how liability can even affect a contractor or small business owner.

And if you are sued, here’s something else to consider. If you are a sole proprietor, then you will be the person that is sued solely; however, if your company is an LLC or Corporation, this means that it is what will be what is held responsible for any debt or incurring liabilities. The benefit is that this kind of corporate shield protects all of your personal assets. The con is that it still affects you because it affects your company.

However, if you’re a new business and you don’t have any credible assets, it’s important to keep in mind that there is potential for your personal assets to be attained for up to the next 22 years and so the decisions that you make today are ones that will also affect you in the long-term future. Actually, this is one of the main reasons why people form LLCs or incorporate their businesses; it’s so they can have their personal assets protected. Just in case.

It’s still a good idea to keep in mind is that even with an LLC or Corporation, there are still instances where you can be held personally liable. If you are someone who personally guarantees a loan, if an action that you take results in a client being injured, if you make an illegal business decision or if your personal and business finances operate under the same entity, there are all potential scenarios for which someone can file suit.

And so, as you can see, there’s really no justification (and in many instances and states, even a legal stance) for going without liability insurance. Really, it’s all just a matter of figuring out what kind of policy will work best for you.
Therefore, as you’re reviewing policy cover info, make sure to inquire about three specific kinds. General liability insurance protects you against any kind of injury or negligence claims along with any property damage that many transpire. Product liability insurance is more of a type of product insurance. It protects you against any kind of defective product that may have caused harm to a customer. And finally, there is professional liability insurance that protects business owners from malpractice and negligence suits.

If you’re uncertain about the kind that you (or your company) will need, it’s best to speak with an insurance agent. As it relates specifically to small business liability insurance, there are many websites (like Small-Business.InsuranceQuotes.com) available that will provide you with a list of quotes and companies within your city and state.

Paying taxes isn’t something anyone likes doing but taxes are necessary to fund a wide range of services to keep our society functioning. It can be depressing to see what you owe each April especially if you can’t afford the sum. What happens when you can’t afford to pay? Come tax season, if you can’t pay Uncle Sam what you owe, don’t worry, you have options.

First, even if you can’t pay your bill, file your taxes. Then do what you can to find the money needed to pay the bill. From using a credit card to taking equity out on your house, using savings, or even cashing in your PTO at work, there are ways to conjure up extra funds if needed. This is your best option as you’ll be able to pay the bill without interest and not worry about it any longer. Also consider your source of the extra money to make sure the interest you’ll get from using some of them to fund your taxes won’t end up costing you more than other options.

You can also wait for the IRS to send you your bill if you only need a little additional time to procure the funds. By not including payment with your tax filing, you will accrue some interest but it will be a small amount compared with the charges you’ll get stuck with by filing late. If you just need a few extra weeks to obtain the money, waiting for the bill is your best option. What’s most important is to file on time in this, and all, situations.

Like all companies, the government offers installment plans if you just can’t pay the whole sum at once but can afford to devote some money each month to your tax bill. Obtaining your payment is their top priority so they will work with you if you’re making a good faith effort to pay. You’ll end up paying a little extra but that sum may add up to less than getting the extra money out of another source.

In extreme cases the government offers an option called Offer in Compromise. In this situation you’ll be required to submit a complete financial profile and pay an application fee of $150. If accepted, you’ll have the option of paying the bill in one lump sum or in installments over a period of time. These cases are approved by a case-to-case basis so you may or may not be accepted. If accepted you make a promise to pay your tax bill in full and on time for the following five years. Again, this is only for special circumstances so carefully consider your other options before resorting to this one.

If you know you’re not going to be able to afford paying your tax bill no matter what the total is, you can apply for an IRS tax extension. If approved, you’ll have an extra six months before your taxes are due to help you raise some extra money to pay your taxes. This will help you save on interest and other charges of paying late and filing late and would be your best bet if you’re unemployed, have no way to pay your bill, and don’t want to apply for an Offer in Compromise.

If you’re one of the many working adults that has suffered from a layoff and had trouble finding a new job during the recession, you may be looking for ways to bring in some extra cash to tide you over until you secure stable employment. Although you will likely receive unemployment benefits (provided you weren’t fired), these have a definite shelf life, and eventually you will find yourself sans funding. When this occurs you could take any part- or full-time job to make up for the loss, but if you can’t attain employment commensurate to your last position you may find yourself with significantly less money, meaning you will have to find a way to spend less.

For many, this unfortunate situation has led to the loss of a home, a devastating blow after losing employment. And some people would rather turn to their 401K or other retirement accounts to get an infusion of cash than risk losing their home and the lifestyle to which they have become accustomed. But there are several reasons why this is a terrible idea.

For starters, there could be severe penalties when you choose to borrow or withdraw funds from a 401K, Roth IRA, or other retirement account. If you withdraw the funds permanently, you will have to pay taxes on the money as though it were income (since you contributed pre-taxable dollars to the account in the first place). You will also have to pay an early-withdrawal penalty (if you’re under the age of retirement, generally considered to be 59½) and it could be as high as 10% of the funds you withdraw.

If your plan is one that offers loans (not all do), you are much better off going this route since it will alleviate the burden of paying taxes on the money, as well as the penalties of early withdrawal. But you will still have to pay an upfront fee, you will be limited in the percentage of funds you can borrow, and you will have a strict schedule of repayment that includes interest on the loan. Should you fail to repay as scheduled you may face serious financial penalties, including taxes and fees.

However, there is a much bigger reason that you shouldn’t touch your 401K: your future. If you borrow against your retirement accounts you may as well be trading your future stability for comforts today. If you are actually able to repay the loan in the time-frame given (generally five years, although it may be longer under certain circumstances), you may not lose much in the long run (aside from the build-up of compound interest, which could actually be fairly significant). But should you fail to repay your loan you will face not only taxation and other financial penalties; you will also forego that money in the future.

Now is the time to save money, while you are still young and able-bodied enough to work. If you have to make sacrifices now, at least you know you’ll be taken care of later on. So pawn your jewelry, sell your house, or look into cash loans; anything to avoid touching your 401K. You’ll be happy you did when you hit the age of retirement and you have the money to support yourself.

Travel lovers take note: you don’t have to be rich to see the world. Even the poor college student, getting by on loans and bad summer jobs can make all their travel dreams come true. All it takes is some solid planning and good decision-making when you’re on the road. As a student, your life is all about experiences, so the first thing you need to do is be willing to put aside all you know about how to travel. But if your goal is to go farther and spend more time on the road than ever before, you have to approach the process with an eye towards spending as little money as possible. That doesn’t mean you can only do the all-inclusive vacations at boring tourist spots. You can still seek out the farthest corners of the earth. Here’s how even the poorest college student can successfully plan and enjoy their travels.

Although the impromptu trip is quite romantic, it is also the most expensive way to go about things. If you’re determined to see the world, start your planning well in advance. You need the most amount of time to save up for your trip that you can possible get, so even six months in advance isn’t too much. Once you’ve landed on a date for your travel adventure, you’ve got to figure out how to afford it. Start out by keeping a firm hand on your expenses. Understand what you absolutely need to spend, and try to minimize unnecessary expenditures. The best method is to keep track of absolutely everything, and then determine where you can cut back. One way to keep honest is to open up an additional bank account as your travel fund. Don’t use a standard checking account, but try to find one that makes withdrawing money a bit more difficult. That way you won’t be temped to dip in if times are tight. Set up an automatic transfer from your regular account, whatever amount you can afford to put aside on a weekly basis. Even $20 a week can go far with enough time and an account with a decent interest rate.

Once you’ve saved up whatever you can, it’s time to hit the road. But the choices you make while traveling will decide how long you can afford to stay out there. That doesn’t mean you should hitchhike or stay in dangerous areas, but there are plenty of ways you can cut costs and stay safe. Any college student used to the dorm life should consider staying in hostels over hotels. Most hostels outside of the U.S. are incredibly cheap, around $30 a night for a bed, and will also allow you to connect with other people traveling on the cheap who will share ideas and pointers with you. Some hostels even have kitchens, so you can save on your food bill. If you’ve got a bit more flexibility, you can splurge for a private room at a hostel, and it will still be cheaper than most hotels and motels.

While you are visiting that distant land, try to follow the example of the locals. People that live there every day generally make inexpensive choices; it’s the tourists who spend money like it’s going out of style. Use public transportation instead of renting a car and taking a taxi, and you’ll dramatically extend your trip. And check out the street food that the locals eat. It’s always cheap, generally filling, and oftentimes is as good as what’s being sold in restaurants. And if you stumble upon a destination that you absolutely love, you can try to extend your trip with a working holiday visa. Depending on the country, this will allow you to stick around for as much as 18 months. You’ll have to get a job, but you’ll truly get to see the country as the locals do, and will certainly live inexpensively. That might be a great option either between high school and college, or after college and before you go back to school to earn your MBA in health management.

In our current economic recession, a lot of people are looking for ways to cut down on their costs. From smaller ways like cancelling memberships and subscriptions and giving up their weekly dining out night to more drastic ways like selling cars, houses, and nonessential possessions, a lot of people are giving up their established ways of life to help save money. Though it’s a big step, downsizing to an apartment from your house has many financial benefits if you’re struggling to make ends meet.

First, selling your house will help solve any immediate financial problems you’re having. Even if you buy a new apartment, you’ll have extra money left over from the sale to put toward debt, fund a child’s college education, or help you retire. Beyond that, you’ll save money every month even with smaller rent or mortgage payments that come with owning a smaller dwelling.

Downsizing from a house will force you to also downsize on the amount of stuff you own. You can earn some extra cash by selling any of that stuff that you no longer need at a garage sale, online, or to consignment stores. It’s an intimidating task to get rid of a house worth of stuff, but it will free you from clutter and you’ll be surprised how much stuff you have that you really don’t need or even use. When you’re forced to confront what you actually need versus what you want, you’ll find that you’ve held on to way more than is necessary. Downsizing will force you to prioritize everything you own and show you what’s truly important. You’ll want plenty of room for that personal, irreplaceable memorabilia and the cost of using a storage unit will add up quickly. Solve both these issues by selling and giving away those material possessions you don’t need.

In an apartment, you’ll also save on a lot of smaller monthly costs and after a few months, that money will really make a difference. For instance, you no longer will have to put any money toward lawn maintenance, or at least greatly reduce those costs if you end up in a condo with a small yard. You’ll also free up some more time each month not having to do yard work. Included in downsizing your stuff, you could sell your lawnmower, edge cutter, seed spreader, and all other tools required for yard work to make a little extra money.

It also just costs less to live in a smaller dwelling, even in the nicest Upper West Side apartment rentals. Easier to heat, cool, and clean, smaller dwellings are more energy efficient and will produce much lower utility bills than a full-sized house. Having less space means you aren’t paying to keep space you aren’t using and your budget will thank you for it.

If you’re in a position now where relocating and downsizing is possible, you could save thousands of dollars every year. Moving, especially out of a house you’ve lived in for a long time, raised your children in, and spent years making memories in is stressful but if you need to lower your costs, it will prove worth it as you watch your savings add up each month.

A high school diploma simply doesn’t go as far as it once did. It used to be the case that a smart, motivated individual could snag an entry-level position in the field of their choice, take notes, shake hands, make a good impression, and eventually move up the ladder. These days, however, the corporate ceiling seems to be collapsing faster than a spiked trap in an Indiana Jones movie. With an abundance of overqualified individuals on the job market competing for even low-level employment, a candidate with no college education just won’t make the cut in most cases. And yet, that doesn’t necessarily mean you have to resign yourself to a job flipping burgers or cleaning hotel rooms. Here are a few to consider if the collegiate path just isn’t for you.

In truth, the term “high-paying” is rather subjective, but we can all agree that something above the poverty level (approximately $11,000 per year for a single adult) or minimum wage ($7.25 per hour) is a good start. However, you want to do better than good; you want a job that will allow you to pay all your bills and sock a little money away to save up for the down payment on a home, an annual vacation, and all the little extras that make life worthwhile. You don’t want to just survive; you want to be comfortable and secure. So just for the sake of argument, let’s assume that high-paying means a job that offers $40,000 a year or better on average. That’s pretty good for someone without a degree.

For starters, you could become an EMT (emergency medical technician). As you may have heard, there is ongoing need for qualified individuals in the medical field. But since you don’t want to spend two years receiving a nursing certificate (much less twelve years becoming a doctor), here is a way that you can pay the rent and help people in need. You’ll earn about $45,000 a year, although you will have to take a few classes, receive certifications, and eventually become a paramedic to earn top salaries in this field. Luckily, jobs for EMTs are expected to grow over the next several years, according to forecasting by the Bureau of Labor.

But what if you don’t like dealing with sick people? There are many other options. With just a couple months of training you could get a commercial driver’s license and become a truck driver earning about $45,000 a year. You could also become a funeral director ($80,000 per year). Those who like to fly the friendly skies could start out as a flight attendant, and while this position doesn’t pay particularly well, on-the-job training could eventually lead to a job as a flight service manager, which pays upwards of $50K. Or you could even become an air traffic controller, a high-stress position that comes with equally high pay (nearly $75,000 per year, on average). And if you’re a real people person, you could go into sales of some sort (cars, homes, etc.) and there is no upper limit on what you could potentially earn here.

Of course, many of these careers still require some amount of training, testing, certification, and so on, but the point is that there are tons of options that don’t entail a search on Craigslist or donning a paper hat. Many require that you spend some time learning your craft, but for some people there’s no better education than life experience. So if the ivory tower of learning just isn’t your thing, seek out one of the many professions that can offer those without a college degree a shot at the good life nonetheless.

With the student loan debt amount nearing $1 trillion soon, there are clearly tons of graduates facing repaying their student debts. The only option for many to attend college or continue with post-graduate work, student loans have gotten easier to obtain but with the poor job market, paying them off isn’t so easy. Here are some pros and cons to consider when deciding your plan for student loan repayment and whether or not you should pay them off early.

Pros
There are many benefits to paying off your student loan debt early. Since the government funds a large portion these loans, they offer very low interest rates. Even though any payments made on interest are tax deductible, you only save a small portion compared with how much you actually pay in interest so you aren’t benefitting much by keeping a longer loan repayment term. Unlike with a mortgage, for example, paying a student loan off early will not change your income tax level much at all.

The only way to get rid of student debt without repaying is through death or permanent disability. It may be better for you in the long run should you hit any rough patches financially to get rid of your student debt as early as possible since bankruptcy won’t forgive student loans.

By paying off your loans early, you’ll also improve your income to debt ratio which will help you buy a house, start a business, or simply free up some extra income each month. By paying off your loan earlier, you’ll pay less in the long run, even with the low interest rates.

Cons
It may not seem like there are many cons to paying off your loans early, but in some cases, it is a better idea to keep your repayment plan as is. One reason to keep the debt is to help improve your credit score if you can stay up with at least a minimum monthly payment. Plus, as long as you communicate with you lender and they know you’re making an effort, they’re usually willing to work with you on your payments should a financial upset occur. They rarely make you pay an amount you can’t afford so if you ever can’t pay, it won’t be as devastating as not being able to pay on other kinds of debt.

If you don’t want to pay off your student debt as early as possible like some, you can use that to your advantage by investing the rest of what you could pay each month. With such low interest rates, you could pay the minimum amount they require and dedicate the rest of the amount you could afford to investing and start gaining some returns.

Since you take student loans with you to the grave, you also don’t have to worry about creating extra burden for your family in the event of your death.

When deciding whether or not to pay off your student debts early, it really depends on you. If you’re the type who hates carrying the burden, get rid of it. If you could use extending the debt to your advantage, then keep your repayment plan. Don’t let the prospect of facing student debt stop you from earning that MSW degree or furthering your education because it’s a worthy investment and whether you pay it off immediately or not, you can find ways to make the debt work in your favor.

Spring is fully in bloom, so if you’re beginning to feel the itch to get away this summer, it’s certainly time to start hunting down the deals. In other economies you would often have found fantastic deals for last minute travel, but with gas prices high and the dollar fairly weak internationally, booking early now gives you the best chance to save big on vacation. Summer is only a few months away, so if you’re serious about hitting that untouched beach, partying in the city or finding paradise off the beaten path, you’ll need to be strategic in order to find an affordable option. Keep in mind that if it sounds too good to be true, it probably is. You want to save money, but you also want to be sure you’ll have a good time on your chosen vacation. So while they might not be the most glamorous, here are some of the best tips for inexpensive travel this summer.

Skip the flight. For many vacations getting there is the most expensive part. Airfare to your destination of choice will probably cost more than your entire hotel stay, even at a fancy resort. So if you’re okay with staying within the country, consider trips that don’t require air travel. Driving to your vacation will definitely save you money, even with high gas prices. As long as your trip is around eight hours or less, you’ll absolutely save driving to the destination instead of flying. If the trip is longer, consider taking a train to your vacation. National train lines always offer discounts during the weekdays, and many modern trains get you there very fast. It may not have the luxurious feel of a flight, but you’ll travel comfortably and won’t have the stress of battling the airport security line or hours of traffic jams.

Travel in the cheaper direction. Although the pull of Europe is strong with vacationers year round, visiting our neighbors to the east is incredibly expensive right now. The dollar simply doesn’t stretch very far regardless of where you visit in Europe, and airfare across the Atlantic is extraordinarily pricy. If you crave the exotic but want to keep your budget in order, consider checking out vacations in Mexico, Central America or South America. Mexico has taken a tourism hit due to the drug situation south of the American border, but you wouldn’t know it when staying at one of their gorgeous resorts. Central America offers incredible food and truly outstanding beaches, and once you’ve paid for your flight you’ll eat and stay very cheap down there. Pick a destination you’ll feel comfortable with, but heading south for your vacation will offer more value for your precious dollars.

Cruise to paradise. Cruise vacations pack a ton of value. Not only do you get to stay on what amounts to a high end resort, but you’ll also get to experience stops at several different destinations all in the same trip. You can often find all inclusive deals that tie in with airfare to save on both, and if you keep your shore excursions on the conservative side you can have an incredible trip that doesn’t break the bank. Check out some travel agency sites to find destination reviews that will help you choose the perfect cruise.

When it comes to handling an estate after a loved one dies, families already face a lot of stress. You wouldn’t want to add to that stress by making common errors when planning the division of your estate in the event of your passing. Here are 5 common estate-planning errors to keep in mind.

Leaving the Division of Assets to the Family
Another way to say this would be that the worst plan you could have is no plan at all. If you leave any division of assets up to your surviving family members, you’re asking for the to get into fights over whom gets what and why. Expunge any possibility of creating extra tension among your family by outlining who gets what either in your will or a trust. If it’s clearly divided by you then they have no reason to fight with each other.

Selecting the Wrong Executor
Your executor has a big responsibility upon your death. He or she must carry out all guidelines you’ve put forth in your will, settle your estate and medical bills and other costs using your assets. It’s a time-consuming and drawn-out process so you’ll want to make sure you choose someone with the aptitude to perform all the necessary tasks. To avoid choosing an ill equipped executor and all conflicts of interest, you may want to appoint an executor outside of your family members, such as a trusted lawyer. A non-biased and professional executor will guarantee everything you laid out in your wills and trusts are fulfilled.

Holding Joint Titles
Whether you chose having jointly held titles to avoid probate or to ease the legal process of asset division, you may be creating more problems than you avoid. With joint titles, upon your death, the jointly held property all goes to the other title owner. This often creates an unequal distribution of assets since all other assets in your will get divided by probate. You could also face losing control of your assets depending on the joint holder. Your assets could fall subject to the other owner’s debts, division of assets in a divorce, or misuse of the assets.

Failing to Fund a Living Trust
After you create a living trust, you need to make sure it’s funded. It’s a common mistake for people to create their trusts and then forget to transfer all appropriate assets into the trust. A trust can only manage assets to which it holds the title so if your trust isn’t up to date, your family will have to endure the probate process to divide assets after your death even if you took the time to create a Living Trust Plan.

Forgetting to Update Your Will, Trust, or Life Insurance
Once you’ve created a will or trust, you need to spend time each year making sure it’s still up to date with the correct beneficiaries listed. With life insurance policies, you’ll also want to make sure in the event of your primary beneficiary’s death, you have a second one listed to avoid further complication for your family after you die. Too often families have to deal with extra paperwork, longer probate periods, and problems if all these documents aren’t kept up to date.

Your family will bear enough upon your death so make sure you ease their grieving period as much as possible with proper estate planning. You wouldn’t want to leave them stuck choosing your casket in a casket store with no way to cover all the funeral costs through improper planning. With poor planning, you also face doling out assets to family members who aren’t prepared to handle them. Though you can never plan your way out of every problem your heirs might encounter, with correct planning, you’ll at least lessen the stress over the process of asset division.