Saturday, September 11, 2010

Questions Great Financial Advisors Ask...


The book of the week was Questions Great Financial Advisors Ask by Alan Parisse and David Richman. I was not super excited by this book. In fact, I am not a huge fan of Financial Advisors to begin with. In the past, Financial Advisors used to be a great tool, but with the accessibility of information nowadays they just aren't all that necessary.

The book was really for Financial Advisors and talked about all the ways to sell yourself in an effort to have a lifelong client. However, it doesn't hardly take any time at all to manage your own funds, so using a fee based advisor is crazy and using a advisor that takes a percentage is just taking away from your earnings.

I don't have a lot to say this week. I don't encourage the use of a financial advisor... if you really need some advise on any investments I am more than willing to help.

The only thing I want to say is this week is... diversify. A lot of Financial Advisors don't really understand the real idea of diversification. They will put your money in 10 different mutual funds, and those are a mix of lots of different stocks and bonds. What's wrong with this? Well... when it really comes down to it.. you are still investing in just stocks and bonds! It may be a 1000 different companies, but you only have two types of investments. To really diversify you need to invest in stocks, bonds, real estate, gold, silver, ETFs, personal businesses etc. If the stock market crashes, like it has a tendency to do, and you only have stocks and bonds you will end up losing your shirt. So diversify.

This book was not riveting and would only be helpful if you are a Financial Advisor. I do not recommend this book for the casual reader. As always, if you have any questions on the book don't hesitate to ask. I would be more than happy to help anyone that wants it.



2 comments:

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  2. It is a great post.

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