Anyone who has invested even one dollar is probably familiar with the idea of diversification.
Holding a varied portfolio not only lowers the likelihood that one single disaster will blow a hole in your nest egg, it also guarantees that you’ll have a part of any good news going.
To ensure you’re diversified, make sure that your holdings include both stocks and bonds. Your stocks should span several industries, rather than being concentrated in a single sector.
They should also be geographically diversified, with Canadian, U.S. and international firms in the mix.
A good way to achieve such diversification and save money on fees is to purchase an exchange-traded fund or low-cost mutual fund as espoused by our Canadian Couch Potato blogger, Dan Bortolotti. For more information, visit his blog here.