Three Ways to Know Your Investments are Falsely Diversified

Morgan Ranstrom |

For individual investors, the internet, technology, and low (or even nonexistent) trading costs have made investing easier today than it ever was in the past. However, between an over-abundance of information, constant distractions, and a retirement system that puts the burden on the individual investor to secure their own retirement, investing wisely has never been harder.

In this episode of Coffee, Sweaters, and Finance, Morgan Ranstrom, CFA, CFP® and Bill Mulvahill, CFP®, CPA, fee-only financial planners and fiduciaries at Trailhead Planners, discuss what investment diversification is, what diversification is not, and three ways to know if your investment portfolio is falsely diversified.


  • What is investment diversification?
  • Why do I need to diversify my investments?
  • Do I need to invest my money with multiple advisers and/or custodians?
  • Should I invest in similar ETFs or Mutual Funds to further diversify my investments?