June 19, 2009

Beat 91% of the Crowd

You want to know how to beat 91% of the crowd?

How do you think you can out invest all the highly paid money managers and traders?

Its simple, very simple and the reason you hear very little about it is that no one has a vested interest in educating you.

Buy the S&P 500 and forget it. Thats it. Back when I was a stockbroker, there were alot of barriers to doing this. There were mutual funds that tracked the S&P but you had to pay a broker to buy them and of course there were minimums and account fees, etc.

Now, with ETF's (exchange traded funds) such as vanguard and very cost effective accounts such as fidelity and scottrade, you can buy your way into the S&P slowly, with the money you have set aside for the long term (yes, i said long term, ten yrs or more) and let it sit.

You won't beat the market but you will participate in it with the lowest possible fees. This doesn't mean you can't lose money, it means you will track the S&P which is the benchmark by which 90%+ of money managers and traders cannot beat with any regularity.

More on fees later. Stay tuned.

June 17, 2009

Investing Is Easy

The investerati has convinced the public that if you save a few extra dollars or come into some money, that you need to 'invest' it in the stock market. This is simply not true, there is nothing wrong with a nice safe CD or money market at your local bank.

Having said that, if you have decided to invest, do yourself a favor and invest on your own and save a fortune.

The investment community are masters of marketing and have you convinced that you cannot invest on your own.

Here's the scoop. 91% of money managers cannot beat the S&P 500 and neither can your stockbroker of financial advisor.

How do I know? I was a great salesman and convinced alot of people to take on more risk in stocks and got paid well for doing it. The dirty little secret is that you can do the same thing yourself and save alot of money, hundreds of thousands over a lifetime!

Most stockbrokers or financial advisors are genuinely good guys interested in your accounts well-being. The problem is that stockbrokers (and thus the brokerage firm they represent) get paid by assets under their control and charge you a management fee of 1%-5% to do nothing more than you can do. Value added, are you kidding? How did you do over the last year?

Stay tuned for exactly what to do.