In order to get a better idea of what I’m all about, and assuming you’ve already checked out the FAQ, here’s where I stand on many key investing topics. I might have also snuck one other topic in there.
To challenge myself (and to avoid putting you to sleep), I’ve addressed each topic in ten words or less.
Active/Passive: Invest passively and pay less to get more. Good deal.
Annuities: Useful for the risk intolerant but always opaque and expensive.
Debt: Sometimes a necessary evil, extinguish as early as reasonable.
Economics/Economic Forecasts: Rarely accurate, typically biased, fun graphs at least.
Emergency Accounts: Absolutely necessary, don’t leave home without one.
Fees: Major drag on returns, rarely justified, must minimize.
Fiduciary Duty: Would you trust someone who’s not required to serve YOU?
Financial Plans: Need to be simple, actionable, readable. Unfortunately, usually >50 pages.
Hedge Funds: Misunderstood, but not suitable for the average investor.
Inflation: Unrelenting, often underestimated, must always be considered.
Investor Psychology: Unbelievably important. Emotion must be minimized.
Gold/Commodities: Gold a relic, commodities provide little else but potential diversification.
Life Insurance: Sold by a broker, therefore requires heavy scrutiny. Still – important.
Mutual Funds: Usually vehicle for brokers/managers to cash in – be careful.
(Sorry, brokers)
Politics: Market likes DC away from headlines, so I do too.
Risk: Not volatility – the probability of incurring a loss.
Seattle Mariners: It takes more than ten words to describe the pain.
Taxes: Aim to minimize, but not at any cost.
Is there anything else you think I should address? Let me know! Or check out my blog for even more detail.