I'm gonna play the devils advocate here and say, if you are young, are smart and do your research, and have a good career (and thus money to invest), then diversification is a terrible idea.
Here's why.
When you're still young (in your 20's), you still have you're whole life ahead of you to invest. So it's smarter to do the research, and focus on some higher risk/reward investments earlier on. If you try and fail, you're still young and have more time to start again.
If you divest too much when your young, then you'll just lose out on big potential gains early on that compound later. Sure you'll eventually retire with a nice safe $500k, or maybe $1-2M, but that'll take you 30-40 yrs to get there. And it won't be enough. If you focus on higher risk earlier on and diversify when you get older, then you'll realize maybe 2x-4x gains over that amount.
It's a different ballgame when you get older. You no longer have the benefit of time (or $$$, as your expenses have increased and likely your relative income has decreased) so you have to play it much safer moving forward.
Either that, or if you are starting over at an older age with next to nothing saved, have to take BIG risks to make up for lost time. Sadly many have to try and do that today. #YOLO
Here's why.
When you're still young (in your 20's), you still have you're whole life ahead of you to invest. So it's smarter to do the research, and focus on some higher risk/reward investments earlier on. If you try and fail, you're still young and have more time to start again.
If you divest too much when your young, then you'll just lose out on big potential gains early on that compound later. Sure you'll eventually retire with a nice safe $500k, or maybe $1-2M, but that'll take you 30-40 yrs to get there. And it won't be enough. If you focus on higher risk earlier on and diversify when you get older, then you'll realize maybe 2x-4x gains over that amount.
It's a different ballgame when you get older. You no longer have the benefit of time (or $$$, as your expenses have increased and likely your relative income has decreased) so you have to play it much safer moving forward.
Either that, or if you are starting over at an older age with next to nothing saved, have to take BIG risks to make up for lost time. Sadly many have to try and do that today. #YOLO
ALWAYS diversify your shitcoins!!
