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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2026

Diversify to Mitigate Risk

Young male entrepreneur stressed out at poor sales Concept of business man doing e-commerce business on website and social media Sell ​​products online.

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.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting 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.

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