Diversification
Spreading money across many investments.
Diversification means not putting all your eggs in one basket. If one investment fails, the others keep your plan on track.
How to diversify simply
A single broad index fund already holds hundreds or thousands of companies across many industries. Adding international stocks and bonds spreads risk further.
Diversification cannot prevent losses when the whole market falls, but it protects you from any one company or sector sinking your savings.