The Only Investments You Really Need?

When I see a magazine cover with a headline like “The Only 7 Investments You Need Now.”, I have to read it. At least for curiosity’s sake. And who knows? I might learn something about earning or growing my wealth.

So, when I saw that headline on the cover of this month’s Money magazine, I put down my $3.99, took it home and read it.

The important point that the article makes is that you don’t need to complicate your portfolio. Especially now, in a bear market that’s so unpredictable. That’s a good point.

But when it came to suggesting what investments you need now, the article suggests just 7 basic investment areas (i.e. Blue Chip U. S. Stock Fund, Small-Company Fund, etc.) and 1 fund in each area.

According to Money magazine, not me, this is all you need right now, along with the funds that they highlight for each selection. (Full disclosure: I don’t own any of the funds in this article.)
1. A Blue-Chip U.S. Stock Fund, like Fidelity Spartan 500 Index (FSMKX)
2. A Blue-Chip Foreign Stock Fund, like Vanguard Total International Stock Index (VGTSX)
3. A Small-Company Fund, like T. Rowe Price True Horizons (PRNHX)
4. A Value Fund, like Vanguard Value Index (VIVAX)
5. A High-Quality Bond Fund, like Vanguard Total Bond Market Index (VBMFX)
6. An Inflation-Protected Bond Fund, like Vanguard Inflation-Protected Securities Fund (VIPSX)
7. A Money-Market Fund, like Fidelity Cash Reserves (FDRXX)

To me, this article doesn’t go far enough. It doesn’t talk about asset allocation or portfolio construction. And it only gives us 1 fund in each area, with a very heavy emphasis on Vanguard Funds. So, it seems like just another old-time generic investment guide. One from Column A, one from Column B and so on.

But don’t take my word for it. Check it out yourself. And let us know what you think.

What’s Stopping Me from Being Rich?

This is a question I’ve asked myself, oh, about 7 million times. It’s also the topic of a pretty good article by Jeffrey Strain on today’s TheStreet.com.

After years of asking this question, I’m sure that it has something to do with the fact that I’m just not doing EVERYTHING I need to be doing to change my habits.

So, after reading the article, it seems that my reason is part of the answer. But it’s not the whole answer. It goes on to take out HOW to change your current lifestyle. The fact that it’ll take time and effort. And the changes that I do make can’t be temporary.

Give it a read for yourself and let us know what you think. You might find your answer to that age-old question: What’s Stopping Me from Being Rich?”

Financial Planner - Yes or No?

The idea of having a Financial Planner really appeals to me. But each of the 4 times that I met with a Financial Planner over the years, I walked away feeling that someone was just looking at me as a “Commission Generator”.

One time, a “Planner” turned out to be just an Insurance Salesman who tried to sell me a Whole Life Policy as the sole investment in the retirement part of my “Plan”. This might’ve been a smart option if I were 25 and could really take advantage of my premiums building up over the years. But I was 48 at the time. And that didn’t leave too many years for the premiums to build up.

But today, I read a great article by Terry Savage on The Street.com about How to Choose a Financial Planner. And it really got me thinking . Could I use one? Probably. Could I trust one? That’s a tougher question to answer right now. But who knows? I might interview a few and find one that I can really work with. How about you? What’s your take on Financial Planners?