(Image credit: Getty Images/Gemini Edits)

It’s one of the oldest investing principles, the “always look both ways before crossing the street” of finance advice. Diversify.

Most people think about two kinds of diversification: investment diversification (don’t put all your money in one stock or sector) and tax diversification (spreading your investments across accounts with different tax treatments). The goal is to reduce the risk of investment losses and unnecessary taxes.

But there’s a third kind of risk that’s increasingly on investors’ minds, and it has nothing to do with markets. Many have already experienced it firsthand.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor.…