Should I use different investment companies to ensure my portfolio is diversified?

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Welcome to Ask Clark, a column designed to answer your financial questions, by money expert Clark Howard.

How many companies should I invest in?

Jim in South Dakota asks: “I understand the importance of diversifying investments. Is it wiser to also invest using more than one company? If so, what is the recommended number? Two to three or more? »

Clark’s take on how many investment companies you need

Clark says: “There is no reason that I know of why it is necessary for you to diversify the company you are investing with.”

If you’re looking for a reputable company, Fidelity, Schwab, or Vanguard are all on Team Clark’s list of top investment companies. Whichever investment firm you choose from these three, Clark says you’ll be in good hands.

“The investments you make are inherently protected even if you’re in index funds or mutual funds,” Clark explains. “You don’t have to worry about them all being in the same company. Keeping it simple in this case, I think, is fine.

If you prefer automated financial advice, take a look at these robo-advisors.

To hear Clark’s full perspective on this matter, listen to the segment:

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