As the uncertainty of the coronavirus unfolds in countries around the world, investors are challenged to move beyond growing anxiety and volatile stock market, and focus on three Coffeehouse Investor principles. . .
1. Don’t put all your eggs in one basket. Diversify between stocks and bonds so that it reflects your need and ability to take risk in your portfolio.
2. There is no such thing as a free lunch. Capture the return of broad asset classes through low cost index and passively managed funds.
3. Save for a rainy day. Create a financial plan that offers clarity on your savings amount while working and spending amount in retirement.