The basic concept of diversifying your assets is found in the classic saying, “don’t put all your eggs in one basket.” If you have all your eggs in one basket and a large rock falls on it, all the eggs crack. Needless to say, if you have all your money in one company’s stock and that company goes out of business… your money cracks as well. The meaning of asset allocation is the spreading out of your money over lots of different kind of investments. Good examples of these assets include stocks, bonds, and savings accounts. You should spread your … Continue reading →