Tuesday, July 2, 2013

Fight Back - Ellen Roseman

Click Here To See The Video

What To Buy
Ellen Roseman is the author of "Fight Back".  I have not read the book, but wanted to highlight some of the things said in this interview.  Ellen makes the point we need to invest only in the things we understand.  We should not buy products we don't understand especially since financial advisors get paid for selling us product, whether we understand what we are buying, or not.  Know how the advisor is compensated - it determines what they sell and what they don't.  Also, we are told to get references every time we hire a professional - why not for our financial advisor?  Don't stop there, either, search online.  Employers do it all the time now, we should as well for the people we want to hire.

Start Small
There is no other hobby, or part-time job that can make us the amount of income that investing can.  Why more people don't learn how, is beyond me.  Ellen suggests starting small and increasing the percentage of one's self-managed portfolio over time.  Avoid getting overwhelmed - start with the advice of the bank you already deal with.  As for international diversification, she recommends it.  To me, that is out-dated advice.  Inverse Exchange Traded Funds allow us to make money when the market is falling, not just when it is rising.      In my humble opinion, most people don't know enough about foreign markets to invest in them.  Paper trading is the best way to start to learn the mechanics of investing.  Investopedia has one such free account to start the learning process.

Have you ever used an inverse ETF, or started by paper-trading?

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