The best way to have your money work for you is by growing it... Buying and holding the right stocks (or more likely the right indices) can do just that for you.
But there's only 1 problem... Actually 2...
Your money grows slowly... and that's only IF you have the right stocks.
Think about it... a truly diversified portfolio... you know, the one you hear everywhere you're supposed to have... can only deliver about the rate of inflation in terms of growth.
It has to... and that's not magic... it's math.
So if that's the case, why does everyone (investment professionals) say you MUST have a diversified portfolio?
It's simple really...
They're not talking to you.
Don't get me wrong... Your investment advisor wants your business... After all, they get paid based on the amount of money they have under management (this is assets under management... also known as AUM)... not how much money they make for you.
But when they discuss what you should do with your money they're talking to folks who have already made their big nut... Whether they inherited it or sold a company, the person who has several million dollars is less concerned with growing his money than he is with not losing it... or, more specifically in the case of inflation, not losing the spending power of the money they already have.
I digress from the point of tonight's email, but this is an important point. If you can wrap your head around this idea, it will help you immensely moving forward.
Now, back to today's regularly scheduled program... | 
