Sometimes even the experienced investor forgets how important diversification really is. Eric Nelson demonstrates what’s at stake in simple and powerful terms. Of course the situation below is theoretical: the math depends on cost, and on which securities you use to achieve your global stock mix. But, the broad-strokes points remain the same: global diversification matters. Curious about your own global diversification score? Click here to schedule a complimentary call with a qualified professional from our team.
How important is broad stock asset class diversification for retirees? If you started spending 6%/yr in 1998, adj for CPI, from $1M port, here’s how much you’d have today in:
S&P 500 = $0 (run out in 2016)
Global stock mix = $1.27M ($183k more income & counting)#servoinsights
— Eric Nelson, CFA (@ServoWealth) July 13, 2019
We’ve started to use social media platforms here and there, and we want to make sure you catch some of our shorter bits throughout the month. To that end, we’ll do a monthly roundup of posts that you might have missed here in the newsletter. Here’s the sampling from March and April.