Have you seen the TV commercial for an investment firm that shows a man with a shiny scalpel on the phone with his surgeon, who is giving instructions on where to make the incision? At the end of the conversation the man asks: “Shouldn’t you be doing this?” The underlying message is that investing is a serious endeavour that involves a lot of education and skill and is best left to professionals.
It is a powerful message, but simply untrue. Most financial advisors who pass for “investment professionals” are simply mutual fund salespeople. Someone mentioned the other day that you need more education to be a hairdresser than an investment advisor in Ontario.
In its fundamentals, investing is very simple. Spend less than you earn. Invest your savings in a diversified manner for the long-term. Rebalance periodically. Keep costs under check. Don’t trade frequently. Really, that is all there is to it.
Bookmark: del.icio.us Digg StumbleUpon
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment