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"Protecting Your Wealth" by Rick Ferri
Taylor Larimore 05-06-2003, 9:37 PM | Post #84133 | 
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Hi Diehards:
I have just completed Diehard Rick Ferri's latest (excellent) book, "Protecting Your Wealth." I know Rick will allow me to share these few "gems" of his investment advice:

"Unless there is a vast improvement in the way we save and invest for retirement, large numbers of future retirees will wither away in their Golden Years mopping floors under the Golden Arches."

"Every dollar you save in commissions and fee expenses goes right to your bottom line."

"Most financial planners agree that investing in insurance products is not the best way to save for retirement."

"When we get down to the basics, we are our own worst enemy. We are prone to have warped perceptions of our ability that cause us to act irrationally."

"History shows that the biggest risk is not being in the market when it drops, but being out when it rises." (quote from Jim Jorgensen)

"Bear markets occur frequently and are a normal part of the economic cycle."

"Trying to time market movements is futile. -- Trying to time sectors and styles does not work."

"The best strategy is to hold a diversified portfolio that contains all types of stocks and stick with a constant mix."

"Let's face it: most investment companies are in business to make money from you, not for you."

"I recommend Vanguard mutual funds to many people. The fees are very low and the Vanguard Group is the only nonprofit investment company that is owned by investors in the funds."

"The problem is, most investment advisors are borderline incompetent."

"Newsletters can claim they have achieved any performance number they wish, even if it is not true, and their claim is protected under the First Amendment."

"Vanguard offers a 'Planning & Advice' section that is one of the best on the web. There is a lot of good information in their Plain Talk investment guides."

"Morningstar has done an excellent job of compiling information for investors. -- You can post your questions under one of the Conversations and you are sure to get lots of free advice. The conversation topic I frequent is the Vanguard Diehards."

"Investing in bonds may not be as glamorous or exciting as investing in the stock market, but their steady return serves as a stabilizer in a portfolio."

"A well-diversified mutual fund holding better-quality junk bonds may have a small place in your portfolio."

"The preferred method of investing in bonds is through low-cost mutual funds. This method offers convenience and wide diversification."

"There are several bond funds on the market, but the Vanguard Group has the best variety at the lowest cost."

"A good rule of thumb is to have no more than 10% of the account invested in company stock."

"When reviewing a retirement plan, it is important to consider the equity in personal real estate. It is there if you need it."

"For most people under the age of 50, the recent bear market was the first taste of what can happen if you get greedy."

"Young adults who think they are blessed with market smarts are lucky if they lose money early in life. That makes them humble and respectful of market forces."

"Early savers need only two or three no-load mutual funds to fill an investment portfolio. Start with a total U.S. stock market index fund and add a total bond market index fund."

"The most successful savers in history have a mantra--Pay Yourself First."

"When your retirement goal is within reach, reduce risk. -- Remember: a ship slows down as it approaches harbor."

"Inherited wealth does not last. Most of it is squandered away in two generations. Enjoy your money while you can."

"In many ways, I think the tax code was designed by a group of CPAs who wanted to create job security. They did a fine job."

"Ensure the investments you hold have a low correlation with each other."

"Write down your strategy (investment plan)--and stay the course."
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Best wishes.
Taylor

Originally posted in thread: 27122
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