Clarify what diversification really means, and why it matters

When you sit down with a client for the very first time, what happens when you start talking about diversification? I’m betting you talk about picking a mix of investments, like stocks and bonds, maybe even some cash or real estate. You probably even discuss risk (another fun word). But I’m betting that most of your first-time clients leave not understanding why diversification matters.It’s no huge surprise. After all, the talking heads on TV tend to focus most of their commentary on individual investments, like owning stock in Apple or buying a Treasury bond. If diversification does get…

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