By Andrew Binetter
In any investment strategy, such as setting aside funds for retirement or to accumulate wealth during our work lives, diversification is the key to a sustainable and secure financial future. Diversification simply means the process of spreading assets over multiple accounts and investment sectors. For retirement, one should fund multiple accounts, including IRAs, employer-sponsored 401(k) and 403(b) plans if available, real estate, stocks and bonds, and annuities or other life insurance policies. Traditional investing for wealth accumulation also requires diversification to help shield the account holder from market fluctuations. Investing heavily into one sector, such as technology, may spell disaster if that market should experience a downturn. Instead, spread assets over multiple investment categories. For example, a diversified investment portfolio will include holdings in sectors like shipping, insurance, manufacturing, technology, and agriculture, to name only a few of the many market choices available. Real estate investments are a smart addition to the wealth accumulation portfolio, provided the individual also invests in stocks and bonds, mutual funds, or other investment sectors. With diversification, one can help ensure a bright and stable future. Read more about click - https://medium.com/@BinetterAndrew/diversification-the-key-to-smart-investing-e53ed3cbb1bb
