SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Rogelio Gonzalez, CRPC®, CSRIC™
Financial Planner
Prudential Advisors
Pacific Northwest Financial Group
1700 SE Mile Hill Drive, Suite 264
Port Orchard, WA 98366
Phone: 360-919-4271
Email: rogelio.gonzalez@prudential.com
Website: www.prudential.com/advisor/rogelio-gonzalez
May/June 2026
Diversify to Mitigate Risk
Small business owners may discover that most of their net worth is invested in their business. But what happens if your business encounters a downturn? This can happen if, for example, your business's market sector experiences a decline. Diversification* is crucial for reducing risk to your personal and business wealth.
Be Cautious with Investments
If you reinvest all your profits back into your business, you aren't protected against a reversal of fortune. Similarly, if the investments you choose for your portfolio are in the same sector or industry as your business, any downturn will affect them too. To diversify and reduce risk to your net worth, pick investments that are in different industries from your business. That way, if your business takes a hit, unrelated investments can help protect you from losses.Diversify Your Business
Consider strategies that expand your business's operations into new products or markets while complementing your current offerings. By venturing into an industry related to your existing operations, you can leverage your current resources and expertise. If you have excess resources or capacity in your current business, you might also consider entering a new market or industry that is unrelated to your current operations but shares similar characteristics.Reasons for Diversifying
Diversifying helps you build wealth and reduce risk by ensuring your income isn't dependent on a single product or service. When you diversify, you can spread your investments across multiple products, services, markets, industries, and geographic regions. Diversification can also help you capitalize on emerging trends that could expand your customer base. Plus, it can protect your business from market downturns and shifts in consumer preferences.Diversification Pitfalls
Building wealth requires consistent effort from the business owner. It requires a sustained investment of time, money, and resources, so make sure you weigh the potential costs against the expected benefits. Spreading your resources too thin might cause you to lose focus on your core business. While staying ahead of competitors is important, ensure your current operations remain your top priority.*Diversification and asset allocation cannot eliminate the risk of investment losses.
1071882
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Rogelio Gonzalez is a Financial Planner with and offers securities and investment advisory services offered through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the propriety retail sales channgel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors".
LPLE and LPL Financial are not affiliated with Prudential or Pacific Northwest Financial Group.
Prudential, Prudential Advisors, and the Pacific Northwest Financial Group are not registered as a broker-dealer or investment advisor.
Pacific Northwest Financial Group and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.