Diversification is Your Key to Long Term Wealth

Why you need diversification.

Upon beginning this blog and in the initial stages of my exploration into the world of investment I thought I could succeed based on a minimalistic and single stepped approach. In stocks.  I knew enough about diversification to stick to mainly market index funds and held entire countries or industries in a fund.  I calculated contributions, previous returns and time to reach a naive conclusion that all would be fine if I stuck to a cookie cutter plan.  Simplicity, time and consistency would do the heavy lifting.

 

What I didn’t really account for, or didn’t take into consideration was the ever changing landscape of the world, the markets and economies.  Highly unlikely circumstances, such as what if the countries, industries and even type of investment I was putting my whole net worth in and betting on became obsolete, lost their dominance or experienced decades of downturn.
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Thoughts on Giving Up Who You Love for What You Love

Thoughts on giving up who you love for what you love.

 

The idea of giving up who you love for what you love is a touchy subject.  I hate to suggest that a particular situation can’t be win/win.  I’m sometimes hopelessly optimistic that you can have your beautiful, prized cake and still somehow eat it.

 

But life doesn’t always work like that.

I also wish I had enough time and energy to do, and learn everything.  But we also know that’s not possible.

 
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