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What is the Meaning of Diversification?

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While the question is simple, the answer is not. Below I have listed several factors where diversification plays a role in reducing risk in an investment portfolio. Asset allocation Most people think of asset allocation when considering if their portfolio is properly diversified. We allocate our monies across the following three (3) asset classes: equities, fixed income, and cash. The decision to include an asset class is based upon their historical correlation with other asset classes. Correlation measures the strength of the relationship between two asset classes, where the value can range from +1 (perfectly correlated) to 0 (no relationship) …

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Collecting Social Security While Working

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According to a 2018 report prepared by the Stanford Center on Longevity, most American workers have not saved enough to allow them to retire at age 65 while maintaining their current standard of living. In 2019, a record number of American workers have lost their jobs, further diminishing their likelihood of a fully funded retirement. Many senior citizens are forced to seek employment in order to supplement their social security benefits which alone are unable to sustain them. This report will examine the implications of working while collecting social security, and what you can do to minimize the impact to …

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529 Plans

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A 529 Plan could be the answer for parents concerned over college tuition costs and financial assistance.