Day Fourteen Keep It Simple
The financial markets are fascinating, overflowing with high‐flying stocks, articulate pundits, gee‐whiz products, hot fund managers, and the ever‐changing drama of each trading day. My advice: Enjoy the show – but if you want to make good money, don't get swept up in the excitement.
The reality is, money management is best when it is simple and cheap. If you don't understand a product, don't buy it. If you don't fully grasp a strategy, don't pursue it. If costs are high, find a less expensive alternative – or skip it entirely. What does that mean in practice? Here are some simple financial products that can be great additions to your family's financial arsenal:
What should you avoid? Below are some products and strategies that are costly or complicated, and sometimes both. Many get heavily pushed by Wall Street – which itself is a warning sign:
I was tempted to make the second list even more ...
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