The Importance of Diversification in Retirement Planning
Introduction
When it comes to planning for retirement, diversification is key. Building a well-diversified portfolio can help secure financial stability and ensure a comfortable retirement. In this guide, we will explore the concept of diversification and provide practical tips on how to diversify your retirement portfolio.
What is Diversification?
Diversification is the strategy of spreading investments across a variety of different assets to reduce risk. The idea behind diversification is that by investing in a mix of assets, you can potentially offset losses in one investment with gains in another.