Mike,
You've asked a really loaded question with a whole bunch of answers.
There's MANY MANY ways to "diversify" your investments without trying to own each category in the S&P...
#1 -- It's not about just owning something in every category. There's sub categories... such as large cap or small cap - or even micro cap... within each category.
#2 -- I firmly believe too much diversification only leads to poor performance
#3 -- To be really diversified only means that you don't have all your eggs in one basket. That could also be defined as everything in stocks!
#4 -- Diversification depends on how much money you have. A guy with 10 grand can be somewhat diversified by just owning 5 different investments. He could own a bank - oil - drugs - retailer - and a food stock. For 10K I'd call that about as diversified as he/she should get.
#5 -- That wouldn't be nearly enough diversification for a guy with 100K or 1MM
#6 -- Just pay attention to QUALITY over trying to spread out "just because".
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RE: Pension
Only discuss this with a qualified Pension pro. There's so much to know and understand about pensions. And remember -- once you're involving other people - such as your employees... now you're taking on a fiduciary responsibility and you put yourself / company at risk if you don't do things right.
Personally -- in today's litigious environment - I'd never involve myself taking on that responsibility unless I had a really large company. I used to have to deal with this when I owned a company in NYC -- and also as a Board Director
at Seattle Yacht Club... it's a nightmare. No thanks!
Last edited by GregWeld; 06-30-2014 at 12:29 PM.
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