Diversification Matters

Walter Upgrave at the Wall Street Journal shares his thoughts about diversification. As we cross 17,000 on the Dow let's look at what we can do to diversify portfolios (click on the chart below to learn more):

Please read the article (subscription required) or google search How Much Diversification is Too Much by Walter. Another take on the case for diversification is made by Paul Merriman with the portfolio he calls the ultimate buy and hold portfolio. Here is his article and the graphs. As is obvious, please consult a financial advisor before making any financial decisions. We only provide education, not personal recommendations.

The Path to Financial Prosperity and Security

1. Don't spend beyond your means

2. Educate yourself

3. Pick the right field

4. Save (and invest) early

5. Don't swing for the fences

6. Keep yourself covered

7. Be wise about a windfall

8. Hang onto cars (and houses)

9. Avoid debt

Source Kiplinger Read what they mean for each item and see if you meet their criteria.

Debt in America

This is an update on debt in America from the Urban Institute:

Debt can be constructive, allowing people to build equity in homes or finance education, but it can also burden families into the future. Total debt is driven by mortgage debt; both are highly concentrated in high-cost housing markets, mostly along the coasts. Among Americans with a credit file, average total debt was $53,850 in 2013, but was substantially higher for people with a mortgage ($209,768) than people without a mortgage ($11,592).

Source: Urban Institute Complete Study