BONUS EPISODE: Stop Buying Stocks!
Today’s bonus episode is all about the necessity of diversification! Tom and Don give some pretty compelling reasons why you should not choose for company stocks to form part of your 401(k) investment, the most important of which is the fact that it places too a high risk on your retirement savings. In fact, buying individual stocks is very rarely a good idea. Instead, you should be looking at a well-diversified portfolio that includes not only US stocks, but global ones from even emerging markets. The proof is out there: a globally diversified equity portfolio is as good as it gets!
Why you shouldn’t choose the option of company stocks in your 401(k).
The problem with investing in individual stocks and what to do instead.
The many benefits of investing in well-diversified portfolios.
Why you shouldn’t be afraid of having emerging markets like China or India in your portfolio.
The outstanding performance of globally diversified equity portfolios since the 70s.
Why you as a US citizen should not have your money only in US stocks.
Another important thing that diversification provides to your portfolio.
Vestory — https://vestory.com/
PACCAR — https://www.paccar.com/
General Electric — https://www.ge.com/
Jeff Bezos on Twitter — https://twitter.com/jeffbezos?lang=en
Dimensional Fund Advisors — https://www.dimensional.com/
Alphabet — https://abc.xyz/
Apple — https://www.apple.com/