Some tips from Consuelo Mack's WealthTrack are diversifying your income sources and investments, having disability insurance and building up a cash reserve. Business journalist Consuelo Mack is the author and managing editor of the wealth and investment show "Consuelo Mack WealthTrack," which airs on Public Television. Mack was formerly anchor and managing editor of the weekly syndicated business program “The Wall Street Journal Report,” which won an Overseas Press Club award, Gracie award and an Emmy nomination during her tenure.
Ordinary investors make money by making wise long-term investments. Diversifying income sources and investments with dividend growing stocks, preferred securities, municipal bond portfolios with laddered maturities, real estate and cash, as well as collectibles such as jewelry, art and antiques, helps protect the common investor from risk in a climate of record low interest rates and uncertainty.
Many people do not purchase disability insurance, but even short-term disability befalling the family breadwinner can have devastating consequences. The misfortune of short-term disability is responsible for 30 to 40 percent of all home foreclosures because people depend on their paychecks to support themselves, their families and pay their bills. Having disability insurance can save families from financial ruin.
Keeping cash is seen as unwise in an economic environment of low interest rates. However, having some cash gives people choices, flexibility, opportunity and security that they would otherwise not have without cash reserves.