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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Real Estate Vs. Market Investing & Renting

Real Estate Vs. Investing in the market…

 

Recently I posted an article on Facebook condemning home ownership.  Read the original story from my friends at Millennial Revolution HERE

 

The post on Facebook was hastily titled: This empirically puts to bed the argument “Houses are great investments because they appreciate in value!!

 

I was met with the following comment on my Facebook.. 

 
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