It’s unfortunate that I sounded arrogant in my last post…that was not my intent. Let me repeat, I agree with Powayseller…there is significant value to her efforts, Rich’s efforts, and all the efforts of this collective blog.
The post was strongly worded only because it was meant to be a disclaimer that no one should take isolated pieces of advice too seriously without having an overall wealth accumulation and maintenance strategy. Maybe it didn’t need to be said.
I am definitely not a financial advisor. I’m not selling advisory services. I simply stated that there is a lot out there to learn and people should find these things out for themselves, if they do not already know them. I also did not include myself in the 5% of people who know such things. I do not include myself among the 5%, in large part because I do have the experience having made AND lost money in each and every investment class. (this 5% number is pulled out of a hat, could be .01%,.1%, could be 10%…I don’t know).
Now, since I’m accused of arrogance, let me humor you…
Anyone who takes their entire California housing bubble proceeds and bounces them around between the stock market and cash or bonds in one giant, undiversified chunk is simply a speculator who has little understanding of how risk can be managed to produce higher returns than even a reasonably lucky speculator will return over time.
How about another one. Financial planners are typically not among the 5% of people that know what the heck is going on. There are obviously good ones who do. I would consider a hedge fund manager who has a 35% annual return track record over ten years by squeezing the nectar out of every type of investment instrument that our fine earth offers as someone who knows what’s going on.
(I’m not that hedge fund manager either by the way, but these people exist.)
