‘Don’t put all of your eggs in one basket’, a saying that has been passed down for many generations. It can be applied across a number of situations, but none more so than asset allocation. Often when it comes to investing there is an area that we might be more confident in. You might have more experience or knowledge in that area, or have had success in the past. You could fall into the trap of investing all of your money in this area because it makes sense to focus on what you know and where you are getting a good return. But all investments can be volatile at times and in order to provide protection and insurance to your wealth you must diversify your portfolio.
How the Royal Commission is influencing the general perception of Financial Advisors
Some commentators on the current banking Royal commission paint a picture suggesting you can’t trust any financial advisor. Most reporters suggest Financial Planners lack best practice values, which to my belief is a sweeping generalist view.