WHY PORTFOLIO DIVERSIFICATION IS A CRITICAL COMPONENT OF INVESTING

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By spreading your money out among different types of investments, you reduce your risk if one of those investments fails.

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A diversified investment portfolio is one in which you have an array of different asset classes.

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First, as the old expression goes, you never want to put all your eggs in one basket.

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How Can I Start Diversifying Today?

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Diversification Across Time

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Tax Diversification

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WHY PORTFOLIO DIVERSIFICATION IS A CRITICAL COMPONENT OF INVESTING

By spreading your money out among different types of investments, you reduce your risk if one of those investments fails.

A diversified investment portfolio is one in which you have an array of different asset classes.

What Is Diversification?

First, as the old expression goes, you never want to put all your eggs in one basket.

Why Is Diversification Important?

How Can I Start Diversifying Today?

You first need to understand better your financial goals and how you are saving your money.

Diversification Across Time

Investing during a recession might differ slightly from investing during a bull run. The best way to diversify across time is via dollar-cost averaging.

Tax Diversification

For example, when planning how to retire early, one must have investments in either Roth or taxable accounts to withdraw penalty-free before the age of 59.5.

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