Can You Be Too Diversified With Your Investments?

diversified

Diversification is a common problem for the majority of investors. In most cases however, the primary dilemma is either inadequate diversification, or a complete lack of it. But there is an opposite extreme that’s not much less risky, and that’s being too diversified with your investments. How do you know if you’re too diversified?

5 Simple Steps to Creating Proper Asset Allocation

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Creating a proper asset allocation is the first, best step toward becoming a successful investor. After all, it’s impossible to time the markets, and no matter how hard you try, you’ll have difficulty beating the market with any specific investment selections you make. Creating the proper asset mix then is the most substantial contribution you […]

How to Choose the Best Asset Allocation Model

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There’s no “one-size-fits-all” when it comes to investing, and for this reason there are different asset allocation models that will enable you to reach your investment goals, within the scope of your risk tolerance and time horizon. Each model emphasizes a different aspect of investing — one will perform better in certain markets, and not […]

Integrating Your Long-Term and Short-Term Financial Goals: Interview with Personal Capital CEO Bill Harris

Bill Harris CEO Personal Capital

“Too often, people have a disconnect between the banking and bills sides of their finances and the investing and retirement sides,” says Bill Harris. “These aspects of finance are separate, and never the twain shall meet.” Harris is the Founder and CEO of Personal Capital, a program designed to help you look at all of your […]

6 Reasons Why Diversification Can Be Tricky

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Diversification is a buzzword that constantly pops up in regards to investing. In theory, the concept seems simple — you spread your investment capital over a sufficient number of securities, and in enough asset classes, that you avoid taking a complete bath when the market declines. But theory and reality are two very different concepts.