That is a ridiculous question, right? Unfortunately, we have millions of uninformed workers managing their own 401K accounts and attempting to time the market with dismal success. The Wall Street Journal discusses the issues developed with the downfall of pensions and what we, as the working population should be doing to set ourselves up for retirement success. If every employee would sit down with a financial professional and devise a long term financial plan, the retiree nest egg landscape would paint a very different picture.
The Three Principles
1. Save for a rainy day.
Develop a long term financial plan.
2. Don’t put all your eggs in one basket.
Diversify in different asset classes.
3. There is no such thing as a free lunch.
Capture the entire return of each basket, or asset class, through low cost index funds.
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