re: The first of the oil majors, COP, cuts the dividend

quote:

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Most would probably agree that the majority of investors share the goal of diversification. However, because of annual contribution limits in a Roth, wouldn't it make sense to limit the number of individual stock's in said Roth? eg. if you held 30 stocks in a Roth, you would be very limited to how much you could contribute to each position each year ($5,500 total).

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It's a solid point. And unless you've have a large sum, you are correct to question whether it's wise or not. But you can be diversified in other vehicles as well.

The way I look at it, and this may not be "the right thing to do" - is plan to diversify over time. For instance I am buying VGENX for the entire year, $105 and change each week. Next year I'll either buy healthcare ( if it continues to get beat up this year) or total market index. Haven't decided. I'm young so the swings now don't bother me and I'd rather diversify this way and take advantage of buying low rather than trying to diversify contributions each year.