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Thursday, September 18, 2008

Financial Advice

I got a letter from Iowa:

At your convenience, do ya'll think this is worth reading, or is it spam? Thanks, Dianne

My reply:

It looks legit, but are you willing and able to spend the time necessary to digest the information they provide?

I am fortunate to have a good stock broker. I came into contact with him because his daughter and my daughter have been going to school together since kindergarten. Our wives are also friends.

He calls me maybe a couple of times a year with advice on what he think's I should do, shift some money here or there, and I go along with his plans. They seem to be working. I'm not making a fortune, but we have been getting reasonable results for the last few years. This year is not going too well, but I think that is pretty much the same for most people.

Keeping track of the market and your investments can be a full time job all by itself. What's worse is once you start, you have to keep after it. Lose interest, get slack, and the market can eat your lunch.

Mutual funds are best. Pick one, put all your money in it and go back to sleep.

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