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The Truth! October 26, 2009

Posted by shaferfinancial in Finance, Uncategorized.

Here are a couple of financial truths:

You will never reach your goals by following the herd;

Already, the Wall Street crowd has put into place and started implementing their plan for your money going forward.  Have you seen the adds where they are working on your fear, your fading retirement hopes, etc.?;

It does you no good to become a do-it-yourself investor if you don’t also become a knowledgeable investor;

You can’t become knowledgeable by reading/following the same advice that failed you before;

Any strategy that doesn’t look at purchase price is bound to fail ie dollar cost averaging, no money down real estate purchases,  routine mutual fund purchases, etc.;

If you don’t have the inclination or the time to make investing a hobby, then don’t expose yourself to the stock market;

Investing is a game that is best played to win, not to become average;

Beware of a strategy that says that investing is easy;

Never put all your assets into one investment;

Always have reserves;

Diversify yes, but not by owning 50 or 100 different stocks or bonds;

Think income investing once you are 50 years old;



1. Randy - November 18, 2009

Could you give some examples please about what you consider to be “income investing” after the age of 50? Thank you, Randy

2. shaferfinancial - November 18, 2009

Randy, Income investing like dividend paying equities, or master limited partnerships or REITs that pay dividend streams. Other considerations are cash positive investment real estate or even certificate of deposits and bonds [either government or corporate] which pay an interest stream. My point is that in retirement you will be looking for an income stream not capital growth so don’t wait until that retirement day to make that change. I track my dividends and know exactly how much I make each year trying to reach an income stream goal. That is a much better metric than trying to hit some future number for your mutual fund amount and hoping that can be turned into an income stream.

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