Barbara O’Neill, Extension Specialist in Financial Resource Management
Rutgers Cooperative Extension
Diversification and Dollar-Cost Averaging: The Basics
Two time-tested investment strategies are diversification and dollar-cost averaging. Diversification means spreading your money among different types of investments (e.g., stocks, bonds, and cash equivalent assets such as CDs and money market funds) to reduce the risk of loss from a decline in any one investment.
There are a number of ways to diversify investments. Below are six frequently used …