How Much Diversification Is Enough In Your Stock Portfolio?

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How Much Diversification Is Enough In Your Stock Portfolio?
How Much Diversification Is Enough?
If you have ever wanted to know how much diversification is enough when it comes to your stock investment portfolio, here are the studies that can help you find an answer.
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Bonds Are Riskier Than Stocks But Still Belong in Your Portfolio
Investing in bonds is much riskier than investing in stocks over periods of 10 years or more due to inflation and interest rate risk but bonds still might need to be play an important role in your family's portfolio.
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Diversify Your Income, Not Just Your Assets
For maximum safety, don't think about diversification as applying solely to your assets and investments.  You should diversify your income sources, too.  Here are some ideas for how to approach the topic.
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Don't Get Caught in the Wash
There is a special rule known as the wash sale rule that can get you in big trouble at tax time if you run afoul of it.
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