We all know that diversification and allocation are important terms and ideas when it comes to investing. But what do they actually mean?  What's the difference between the two?  Kevin Dick of KDI Wealth joins Jon Gay in today's episode to discuss.

Having 10 different stocks does not mean you are diversified!  It comes down to types of stock, and classifications - to make sure you are spreading your wealth out.   And you need to be in more than just stocks.

Also, as you get closer to retirement, you'll want to change how you are diversified.  Like Kevin points out, you wouldn't stay in the fast lane, then cut across 5 lanes right before your exit.  The results would be disastrous.   And don't be too conservative though - bonds, savings accounts, and the proverbial "mattress" strategy can lose money with inflation.

To contact KDI Wealth for help with your financial future:

Call (877)-474-4350

Or email Kevin: [email protected]