Don't Settle for Anything Less Than True Diversification

Diversification is a big word, but it can be simply defined: Don't put all your eggs in one basket.

That sounds easy enough to understand and accomplish, but it can be trickier than you might think. That's because there's a big gap between how Wall Street looks at diversification and how the average retiree views it. Many people who think they are diversified, in reality, are not.

Here's an example: A woman I know rolled over her 401(k) to an IRA at her local bank when her employer went out of business. She had been hands off up to that point,