What is a diversified retirement portfolio?

Diversification involves spreading investments across various asset classes, sectors and geographical locations. This approach reduces exposure to any single investment so one poorly performing area doesn’t take a detrimental toll on the overall portfolio. The following are three general benefits of having a diversified retirement portfolio:

Should you diversify your investment portfolio?

Investing in the stock market will always come with some risks. But a well-diversified portfolio is one of your best defenses against market downturns or financial crises—not to mention a cornerstone of building long-term wealth. Still, as a beginner investor, you might be wondering how to strategically diversify investments.

How can a financial advisor help you build a diversified portfolio?

A financial advisor can help you build and diversify your portfolio to align with your age, risk tolerance and goals. Building a diversified retirement portfolio is a strategy designed to manage risk and maximize returns. Diversification involves spreading investments across various asset classes, sectors and geographical locations.