A diversified investment strategy could involve allocating the monthly contributions across different asset classes, such as stocks, bonds, and real estate. Consider a mix of low-cost index funds, individual stocks or bonds, and real estate investment trusts (REITs) to balance growth potential with risk mitigation.
The investor is a 35-year-old individual with a stable job, who wants to start investing $500 per month for retirement and other long-term goals.
Assume the role of a financial advisor and briefly outline a diversified investment strategy for a new investor with moderate risk tolerance.