If you’re a beginning investor, it’s likely you’re concentrating on building your portfolio. But as important as it is to build that portfolio, you should also ensure that it’s diversified.
Why is a diversified portfolio so important?
There are three key reasons why diversifying is important:
As the go-to investment option for most companies and their employees, 401(k) plans provide many benefits to plan participants, including deferment of taxes, the likelihood of an employer match, and a high maximum allowable for annual contributions. But for those that are self-employed, or whose employer does not offer a 401(k), a traditional or Roth IRA is an option.