Investment Planning.

You've heard the old investment adage, "Don't put all your eggs in one basket." It's good advice. A diversified portfolio should be at the core of any well-planned investment strategy. While a worthy goal at any age, it's especially desirable as your net worth grows over the years. The basic purpose of diversification is to help reduce your risk of loss. It's primarily a defensive type of investment strategy. Depending on your investment goals and tolerance for risk, your strategy may emphasize one type of investment over another. But overall, your plan should be diversified. That's because no single type of investment performs best under all economic conditions. A diversified program has the potential of weathering varying economic cycles and potentially improving the trade-off between risk of loss and expected return. Of course, diversification cannot entirely eliminate the risk of investment losses. Historical performance relative to risk and return points to, but does not guarantee, the same relationship for future performance. There is no assurance that by assuming more risk, you are guaranteed to achieve better results.