Using diversified investment strategies basically means that you are spreading your investments out over a number of different areas to be better assured that you will not lose everything. You are investing in ten companies, for example, instead of just one. A lot of times these plans are set up so that you have one general account into which you can put your money. That money is then automatically spread out over these different investment avenues. You can add money to the account in general and know that it too will be spread out. You do not have to try to figure out how much you have, divide it by the different ways that you want it to be used, and invest accordingly. This streamlines the process and makes it much easier and more practical. The benefit of this, as mentioned, is that you