One effective strategy for long-term growth is to maintain a balanced portfolio that includes a mix of different asset types, such as stocks, bonds, and real estate. For example, if you invest $10,000 and allocate 70% ($7,000) to stocks and 30% ($3,000) to bonds, you can benefit from the higher growth potential of stocks while also having the stability that bonds offer. Over time, this mix can help you capture growth while managing risk better than investing in just one type of asset.

Asset allocation refers to the way an investor divides their investments among different asset categories, such as stocks, bonds, and cash. The main goal of asset allocation is to balance risk and reward according to an individual's risk tolerance, investment goals, and time frame. By spreading investments across various asset types, investors can help protect themselves from significant losses in one particular area.