Every investment carries risk—but not all risks are created equal. The key to building a resilient portfolio in 2025 is knowing how to balance high-risk and low-risk assets based on your goals, time horizon, and tolerance.

High-risk investments:

• Cryptocurrency
• Tech and growth stocks
• Penny stocks
• Startups / private equity
• Leveraged ETFs or derivatives

These offer potentially high returns, but they also carry volatility and the risk of total loss. They’re best suited for short-term plays or small portions of a long-term strategy.

Low-risk investments:

• Government bonds / GICs
• Blue-chip dividend stocks
• High-yield savings accounts
• Money market funds
• Treasury bills or TIPS

These are more stable, ideal for capital preservation, emergency funds, and short-term goals. But they typically offer lower returns.

How to find the right mix:

• In your 20s/30s: Tilt toward high-risk (70–90% stocks)
• In your 40s/50s: Rebalance toward stability (60–70% stocks)
• In your 60s+: Focus on capital preservation (40–60% bonds/income assets)

Risk management tips:

• Diversify across sectors and asset types
• Avoid emotional trading
• Rebalance regularly
• Align your risk level with specific goals (e.g., down payment vs. retirement)

Risk isn’t bad—it’s necessary for growth. The trick is not eliminating risk, but managing it wisely.