The Investment Pyramid
An investment program should be built like a
pyramid -- with a strong, broad base. The diagram
below illustrates a typical investment pyramid.
*
* *
* *
* *
* Art * HIGH RISK
* Metals * HIGH REWARD
*Gem Stones *
* Options *
* Commodities *
* Exploration *
* Venture Capital *
* *
* SPECULATIVE *
*-------------------------*
* Investment Real Estate *
* Growth Stocks *
* Growth Mutual Funds *
* Equity Partnerships *
* *
* GROWTH *
*---------------------------------------*
* Sale of Covered Options *
* Conservative Equities *
* (Util.Stocks, Convertible Bonds, Bal.Funds) *
* Residence G.N.M.A. Retirement Plans *
* Corporate Bonds Annuities *
* Municipal Bonds U.S. Govt. Notes & Bonds *
* *
* SECURE *
*---------------------------------------------------------*
* Savings - T-Bills *
* Money Market Funds/Accounts *
* Life Insurance (Cash Values) *
* - *
* LIQUID FOUNDATION *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
LOW RISK
LOW REWARD
NOTE: This Pyramid is intended merely to illustrate the concept.
Each investor will differ on the levels to which various assets
are assigned.
