> Don't discount the knowledge you have from being deep into an industry. [...] diverse portfolio
It's worth emphasizing that investing in the same sector that you are employed-in is actually a kind of anti-diversification, and it won't usually show up using "rate my portfolio" tools.
The archetypal example that comes to mind--unusually extreme but illustrative--would be all those Enron employees who invested their 401(k) funds straight into their own employer.
Consider these three scenarios:
1. If your investments plummet but you keep getting wages from you job, you can try riding it out until they recover.
2. If you become long-term unemployed but your investments stay normal, you can sell a little to cover the gap.
3. But if you can't work and your investments plummet, you may be forced to "sell low" quite a lot to cover immediate expenses, and the long-term outcome is much worse.
It's worth emphasizing that investing in the same sector that you are employed-in is actually a kind of anti-diversification, and it won't usually show up using "rate my portfolio" tools.
The archetypal example that comes to mind--unusually extreme but illustrative--would be all those Enron employees who invested their 401(k) funds straight into their own employer.
Consider these three scenarios:
1. If your investments plummet but you keep getting wages from you job, you can try riding it out until they recover.
2. If you become long-term unemployed but your investments stay normal, you can sell a little to cover the gap.
3. But if you can't work and your investments plummet, you may be forced to "sell low" quite a lot to cover immediate expenses, and the long-term outcome is much worse.