What do you think about investing in startups as a way to diversify your portfolio?
I think investing in startups is a great way to diversify your portfolio. You're investing in something that's new and innovative, which means that there's less risk of the company failing, because they haven't been around long enough to have accumulated much debt or bad habits.
And if you're lucky enough to invest in a startup that turns out to be wildly successful, then you could make a lot of money—which is always nice! But even if you don't get that lucky, at least your investment will pay off if you keep it long enough and let compound interest work its magic!
I've seen this work out for me personally: when I first started investing, I was just starting out in my career as an engineer at [company name]. My job wasn't super well-paying (and still isn't), but it was enough for me to start putting some money away every month into my retirement accounts. At first, I didn't know what else to do with it—so when I saw an ad for "venture capital" options on my 401(k) platform, I took the plunge and invested $500 into one of these startups called [company name]. The company didn't do very well at first.