Diversify your #1 source of wealth #habits

5 Dec 2020 · 1 min

Watch on YouTube

0:55

TJ Walker argues that while investors know not to put all retirement savings into a single stock, most people fail to diversify their greatest asset—their labor/career. Using a 1998 stock analogy and pandemic lessons, he urges viewers to build career diversification and alternative revenue streams (a Plan B) rather than assuming a current job or business will last indefinitely.

Chapters

Imagine. I'm your financial advisor in 1998, and I tell you to put all of your retirement income, all of your retirement money into one stock compact computer. It's at $55 a share. Things look good. It's been going up. You'd probably say, well, it might be a good stock but need more diversification. That's too risky to put all your eggs in one basket. And you know what? You'd be absolutely right. But here's the problem. The biggest asset most people have is not really the money in their retirement account. It's their own labor, it's their own career. And most people do not diversify their own career. We just assume this job I have will be here forever. This restaurant I've started will always be here. No. That's one thing the pandemic has taught us. You need career diversification. You need a plan B. You need other sources of revenue. Don't assume the world will always be as it is now.