Tuesday, October 16, 2007

Simple Investment Ideas and Concepts for Friends

A friend of mine and I were talking about investing of retirement money this weekend, and they asked me for some advice.

They wondered if I could look at their investment portfolio and give them some an assessment of their mutual fund choices.

My first reaction was:
"Gee...I might have a few bucks in my retirement account, but I don't think I'm an expert."

Well, I still agree with not bring an expert, but I have to say that I might be selling myself short with regard to not knowing something about investing.....yes, my knowledge is simple, but I think it is always useful. (I didn't make it up, so don't let me make you think I created a special set of investment rules)

No, I thought about what I might suggest, and my first rule of thumb would be to diversified.

Simple enough.....

The my second rule of thumb.....set it and forget it. (sort of....at least try to do your homework and pick long term investments and only monkey with those investments once a year, or should the bottom fall out. Oh, if things crash, certainly then it is time to GET OUT ahead of the others while there is still a "bottom" to the market)

My friend told me they initially put their money into a socially responsible fund....and I noted that this actually might not be such a bad place....you just have to do a bit of homework to see what that particular set of funds is doing and if it invests in good growth areas, or things that are under stess. (and of course, past performance is no indication of future performance....but you have to look at something if you don't have a crystal ball.....at least try to look at and assess its more long term potential.)

So I suppose I will look at their portfolio and see if anything "pops out at me".

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