All right, Ari. So my account balance is growing. My net worth is growing. I need to diversify. We all know that. I'm going to start moving my money. Instead of just being at one institution, I'm thinking Schwab and Vanguard and altruist, embedermint, and the more I can spread that out, the better. What are your thoughts?

I think you're thinking about the right things, which is diversification, but I don't know if you're really diversifying the right way. And I don't imagine, I could be wrong, but I don't imagine you want to have to log into a million different places to see your money. So this concept of diversifying sounds good. There's a reason. Someone doesn't want all their eggs in one basket, but it sounds like you're going to have like one egg in a lot of different baskets. I think there's a better way of looking at this. All right. Well, let's talk about it. That's what we're going to talk about today is what are the different kinds of risk because at the end of the day, diversifying is to protect us against risk. But risk is something I think a lot of us misunderstand. So we're going to find the types of risks that we should be looking at and how can we diversify against each of them. Before we do, this is our new show. This is our new channel. It's going to be hosted on a root financial YouTube page. So you have your YouTube page, R.A. Taublieb, I have my YouTube page, James Cannell. Both of our channels have a featured, what is it called? Featured videos? Featured channels. Yep. Featured video. Okay. So either search route financial and you can subscribe, but if you search route financial, it's probably just going to take you to Ari's page or to my page. So if you want to find it, if you want to find where this lives, go there just as a quick

commercial so that people can find where this is going to live on YouTube. Where do you want to jump

into today's episode? Let's jump in with the question that came in. And just so everyone knows,

we are always making these videos based off of your feedback. So you're going to be able to see this if you are on

YouTube. And if you're listening on the podcast app, you can, of course, listen to us share this.

But this comes from Love Matters 7122, who says, is it best to split retirement funds between

more than one investment firm, say Fidelity and TIA or Vanguard. How do I think about this? I want to diversify. I want to be smart, but I don't know what I don't know. Yeah. Sometimes in examples, I think the easiest way to illustrate something. So let's use an example. Let's assume that I do that. I have my money and I say, I'm going to spread it out because I know this concept of diversification. I know it works. I'm going to split my assets between Fidelity,

Charles Schwab, and Vanguard. Great. Let's say I come to you with those statements. I have three

different statements from three different institutions and you look at both of them and not both

them, all three of them hold 100% Tesla stock. How diversified are you going to tell me that I

am? You're not diversified at all. You have Tesla entirely across, no matter where you own it,

you could own it in your backyard. That's just more Tesla. More Tesla. and that's an obvious example, almost a laughably dumb example, but I think

what it's illustrating is just spreading out institutions is not diversifying you.

Now, there is something to be said about that because there are reasons to do so, which

we'll cover, but also there's some reasons that probably you shouldn't

do that, and we'll cover that as well. So I think the bigger question here is what types of risks

actually exist? How do we protect ourselves, which is the heart of the question is, how do I ensure

that my money is safe? So I don't wake up one day thinking, I wish I hadn't done that. I should have spread out my money better. What are the different types of risks? Where should we start with that? I would start with just making sure wherever your money is. Number one, you know where it is, meaning do you even know where to go to log in, but then you're probably thinking, hey, I don't want to wake up one day and go, hey, is that like money now saying

zero because there was like a Silicon Valley bank thing? And I heard about other stuff and like Schwab

and Fidelity, like is my money safe? So insurance is a big way we can approach this, which is thinking

through, hey, am I insured and what does that really mean? But the same example you just shared,

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