How Does Diversification Really Work? (Video)

“The important thing about an investment philosophy is that you have one you can stick with.”
-David Booth, Founder and Executive Chairman, Dimensional Fund Advisors

There are many factors to consider when deciding to invest in the financial markets. To start, it’s important to think about your personal situation: the years you have left until retirement, and how much risk you’re willing to take with your money.

But it’s also crucial to have a long-term, disciplined strategy in place — and that’s where diversification comes into play. When investing for retirement, a diversified portfolio helps spread your overall risk, keeps you out of the guessing game and can protect your hard-earned savings against market turbulence.

Diversification is an extremely important component of our investment philosophy, which is why we’ve dedicated the next video in our Big Future, Little Steps series to the concept. Watch the video above to learn more about diversification and find out how it can benefit your retirement savings strategy.

Want to Learn More?

Debating between a Roth versus a traditional 401(k) plan? How can you decide which option is right for you and your retirement goals? Discover the differences in the second segment of our Big Future, Little Steps series.

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How Does Diversification Really Work? (Video)

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