Posts Tagged "diversified portfolio"

Mutual Funds: Great for portfolios up to $100,000

Posted by Preet on Jul 28, 2007 | 0 comments

I suppose many financial advisors licensed to sell ONLY mutual funds will cringe at this information. First, I want to say that if you have more than $100,000 in your portfolio it does not automatically mean that it is time to get out of mutual funds. But certainly once you pass this threshold you will want to look at alternatives to mutual funds as your options open up (based primarily on the fact that buying in bulk reduces your trading costs). If you remember in my first post on Mutual Funds we defined mutual funds as being the ideal investment for SMALL investors because trying to build your own diversified portfolio would cost too much in trading commissions. So...

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What is a Financial Plan?

Posted by Preet on Jul 25, 2007 | 0 comments

I’ve included this in the General section because it is a topic that applies to all knowledge levels.  Why? Well, I’ve found that even the most sophisticated investors lack a financial plan. You can have the most properly diversified portfolio in the world, proper asset allocation and great returns but it doesn’t mean squat if you are not achieving your goals. Why is that? Well, if this sophisticated investor was averaging 1% more per year in his portfolio than everyone else, but was saving $50 a month thinking that his investing prowess will make him/her retire early, but the person who is earning the average return (1% less than the sophisticate)...

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