
Diversifying your investments: 4 common pitfalls
Diversifying your investments doesn’t mean having more than one financial institution look after them for you. Find out how to avoid common errors that can impact your portfolio.
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Question 1 : Holding multiple investment accounts is a good diversification strategy.
False
It can make it more complicated to track your investments. A diversified portfolio is one that’s invested in different asset classes that will perform differently–sometimes dramatically so–at various stages of the economic cycle. Diversifying aims to reduce the impact of market fluctuations.
Question 2 : Doing business with just one financial institution gives you better control over your finances.
True
You’ll have a better idea of the big picture, and so will your advisor. They’ll be able to track your investments more efficiently and make better recommendations so your portfolio measures up to your expectations.
Question 3 : Anyone can manage their own investment portfolio with a direct brokerage account.
False
Investing without advice is for those who have time and interest to follow the financial markets. With education tools, you could manage all or part of your portfolio and likely reduce your transaction fees.
Enjoy the three advantages of having one advisor in charge of your finances for a worry-free retirement.
Diversifying your investments doesn’t mean having more than one financial institution look after them for you. Find out how to avoid common errors that can impact your portfolio.
No matter how much is in your portfolio, you want to get the most from your investments. But making the right decisions isn't always easy. A little knowledge goes a long way!
An income withdrawal plan is an excellent way to make sure your savings will last as long as possible.