Right down the street from my office in La Mesa is a little hole in the wall coffee/snack shop. They have really good breakfast plates and sandwiches. However, as you can already surmise, they serve a really good cup of java. Strong, it will give you the jitters if you are caffeine averse.
I wouldn't say I am experiencing the symptoms of caffeine jitters, but I am excited about doing a blog. I'm not sure of what to expect but am hopeful and optimistic. Wow, what if people do read and respond? How terrific would that be?
One of the basic things about financial stability is diversity. It is so important to be financially diversified. As an advisor, I strongly recommend a minimum of seven basic classes of assets. Financial stability comes from the ability to grow in multiple areas while being "defended" by other classes.
What are your thoughts on asset allocation and diversity?
Ed, Good to see this blog! What is your opinion of Index funds rather than individual mutual funds?
ReplyDeletert,
ReplyDeleteMy opinion is quite high on index funds. I use them ocassionally in my practice. Check out http://www.fool.com/mutualfunds/indexfunds/indexfunds01.htm for a fairly comprehensive treatise on index funds. No question, the expense ratios, turnover, market sector, and cash reserves issues are favorable usually to the index funds. While we advisors are categorized as "buffons" in the above article, I still think that I and others like me can add value by using sectors and some timing very productively using individual mutual funds, ETFs and stocks/bonds. This is the actively managed expertise versus the passively managed index that mirrors markets. In fact, I can actively manage AND keep costs lower by using ETFs. Passive management by itself is ok for buying and holding. Active management, which is what I do, requires the use of all the tools in the shed in order to try and beat the indexes and provide good performance and value for the client. Good luck!
Ed Felter