Diversification and Asset Allocation
Real diversification is not three mutual fund accounts that all move together. It's holding assets that tend to react differently to market conditions.
What it is
Real diversification, in Kyle's words, is not three mutual fund accounts that all move together. It is holding assets that tend to react differently to market conditions, which may help manage portfolio volatility as you stop adding to the pile.
Who it helps
Anyone whose portfolio looks diversified on paper but is actually several accounts that move together, especially as they get closer to living off those savings rather than adding to them.
How Kyle approaches it
Kyle reviews what you actually hold, not just how many accounts you have, and looks for assets that respond differently to the same conditions.
Important information
Diversification and asset allocation do not ensure a profit or protect against loss in declining markets.
Frequently asked questions
What does diversification really mean?
It is not simply owning several mutual funds, which often move in the same direction at the same time. True diversification means holding assets that respond differently to the same conditions, which may help manage portfolio volatility. Diversification does not ensure a profit or protect against loss in declining markets.
Talk with Kyle about diversification
Every conversation starts the same way: no obligation, just a second set of eyes on your plan.
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