I found this article about tips an adviser shares with his ultra wealthy clients. Each week I'll post about a tip and how it applies to regular people.
10. Avoid concentrated positions. (Skipping #9 as it's about communication styles)
As the saying goes, don't put all your eggs in one basket. Though many of the wealthy made their money from owning a business or in 1 area, those who stay wealthy understand the importance of diversification.
For regular people, concentration of wealth can be problem also. How? Employee stock purchase plans. Now, it can be a good deal, but your income (salary) and an asset (company stock) would be tied to the same company. And if that company isn't doing well, that can affect the value of the stock and income through layoffs.
For some, this is an even bigger issue as I know several families where both parents work for the same company. Talk about concentration!
Make sure you are truly diversified!
