| If you've been investing for any length of time, you've likely heard plenty about diversification - the concept of spreading investments across different asset classes and different investments within those asset classes. The idea is so highly regarded that the creators of portfolio diversification theory won the Nobel Prize in economics in 1990. The Oxford Club certainly adheres to this theory. The Oxford Wealth Pyramid, which we consider to be "the blueprint for financial independence," recommends that your portfolio includes a core portfolio, "Blue Chip Outperformers," targeted trading, and other strategies to ensure a broad mix of investments that should pay off over the long and short term. But it's not just about diversifying your stocks or even diversifying across asset classes. I recommend you also diversify where you keep your investments and cash. I learned the hard way about the risk of having most of my money in just one financial institution. Shortly before the global financial crisis, I invested nearly all of my cash in what were supposed to be very short-term, very conservative notes. I expected that my cash would earn a superior interest rate and would be available to me when I needed it. But when the economy and financial markets seized up, my broker froze those notes - and my cash along with it. I eventually got all of my money back, but it was a long year until I did. At the same time, my bank - one of the largest in the country - went under. Fortunately, the larger bank that rescued it handled the transition seamlessly (though they've been awful to deal with ever since). After those two harrowing experiences, I vowed to never be in the same situation again. I now make sure to spread my investments and cash over various financial institutions. That way, if one goes down and my assets are locked up, I'm not scrambling trying to figure out how to pay the mortgage. | 
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