I heard a great analogy yesterday. Actually, I read it in a book about stories used to illustrate financial ideas. See the picture below? What do you think it is? Don't skip ahead. Just take a guess.
What do you see? Two boxes? Okay, you are forgiven for not knowing because I am not an artist. Those boxes are two elevators and the cables supporting them. Which one would you ride in? The one with multiple cables obviously.
This is an analogy for why you should diversify. You want a second/third/fourth cable in case one snaps. The cables are representative of assets in your portfolio. It's about safety, peace of mind, and strength. You want multiple independent cables supporting your savings for retirement.
Have a nice Thanksgiving. I'll be smoking sausage and stuffing my face with turkey, pecan pie, and possibly some Glenlivet 18 yr here in Chicago's burbs.
I am a Chicago-area financial adviser to young doctors & business owners.