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*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties.

There’s no two ways around it – the COVID-19 crisis is here to stay, at least for the foreseeable future. Even if social and medical conditions improve in the short term, there’s almost no doubt that the new bear market will remain in place through the end of 2020 (if not longer).

Intro

Those of you who are of a certain age may remember the Roseanne Rosannadanna character from Saturday Night Live’s signature line, “It’s always something.” She might be right. And if you remember the character, then you’ve probably lived through all of the U.S. financial crises below.

Being financially literate in today’s economic climate is more important than ever. Understanding finances can help you make better money management decisions, budget your money properly, adequately save for college, and be financially prepared for retirement. While it may sound daunting, financial literacy starts with a budget.

If you’re a beginning investor, it’s likely you’re concentrating on building your portfolio.  But as important as it is to build that portfolio, you should also ensure that it’s diversified.

Why is a diversified portfolio so important?

There are three key reasons why diversifying is important:

Managing finances properly is mainly common sense. While we’ve all made financial mistakes, most of those mistakes are easily rectified, particularly when promptly corrected. However, there are some financial decisions that can be much harder to recover from. Here are just a few of them:

In 2018, student loan debt in the U.S. reached $1.5 trillion. With a continued increase in college tuition, it's likely that even more young adults will be turning to loans in order to finance their education. 

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties.