I’m going to work forever, never retire. I love my job, I like my clients, my commute is less than four minutes, and my office is air-conditioned with high-speed internet. What could be better? When I tell people I’m going to work forever, they think I’m crazy. Likewise, when I meet someone who’s going to retire early, I think they’re crazy. There’s probably a happy medium in there somewhere.
Is it better to buy individual stocks or mutual funds? It depends, of course, on several factors like how much to invest or how much risk you’re willing to take. If you have a high tolerance for risk and millions of dollars to invest, you may be a good candidate to own individual stocks. If you only have $1,000 to invest, a mutual fund is a better option.
Advisors, brokers, planners, bloggers, vloggers, Fin Twit experts, and other pontificators are praising the benefits of their own fee models while bashing all others. Strong opinions about whose fee schedule is best is a common thread. At the end of the day, however, a fee is a fee regardless of how it’s charged.
Active stock traders need to keep some dry powder so they can buy stocks when the stock market falls. Dry powder usually means cash. Allocating a portion of your portfolio to cash will be a drag on your returns, especially in a low interest rate environment with a rising stock market.