You should diversify within each security class. Investing in 10 energy stocks is not diverse. Branch out into multiple industries with different characteristics.
Investors can easily convert money market securities into cash without loss of value. They are low-risk low return instruments with liquidity, stability and provide access to money.
#5 Bonds With Different Characteristics
Investing in bonds is desirable for more predictable income streams. It is desirable to invest in various bonds: treasury bonds, municipal bonds, and corporate bonds.