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the right way to invest blog

Why Diversify?

12/6/2018

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With the ugly performance of the US stock market since the beginning of October it’s important to remember why we must diversify our retirement portfolios. There’s a world of opportunities in stocks, but only about half of those opportunities are in US companies, so the other half is outside of here in the foreign and emerging markets. 
 
When we diversify (by investing in thousands of big and small companies in the US and abroad) we accomplish two things:
  1. We decrease the likelihood that we’ll have the best or worst performing portfolio. And when it comes to our one shot at planning our retirement, we can’t swing for the fences and come away with either a home run or a strike out.
  2. We reduce and help manage catastrophic losses that can come with investing in one area of the market or investing in just a handful of companies.
 
For more information, you can check out this article from DFA; I highlighted a couple areas I thought were important to read.
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    Michael Pensinger, CFP® is Owner and President of Pensinger Financial, Inc.

    He grew up in Park Forest, Illinois and now resides in Lemont, Illinois with his wife, two children, and two dogs. Michael is actively involved in his community; coaching kids' sports, having served as Treasurer for the Lemont Area Chamber of Commerce Board of Directors, sitting on the Board of Directors for Hope & Friendship Foundation, and volunteering for the Lemont Heritage Woodland Sanctuary Open Space Committee. Read More

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ABOUT US
A Quick Look
Core Values
Background
What it Means to be a CFP
Code of Ethics
Investment Philosophy
WHAT WE DO
Our Services 
Our Pricing 
401(k) / 403(b) Rollover
Small Business Retirement Plans
​HCBA Retirement Solution
RESOURCES
Client Access
Investment Returns
Helpful Links
Reading Recommendations
Frequently Asked Questions
EXTRAS
Videos
​The Right Way To Invest Blog

Photos
​​That Familiar Voice
DFA Youtube Channel
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Lemont, Illinois 60439
630-754-7580 Phone
630-590-9392 Fax

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