Carla Fried: In personal finance, simple is almost always better

The financial industry loves to sell complicated – and expensive – products, but simple is quite often the smart choice.

You know all about the value of diversification. The simplest approach to diversification is to own a mix of stocks and bonds. At the other extreme is a portfolio that owns a dozen or more types of asset classes, such as commodities, alternative investments and real estate, here and abroad.

The triumph of the boring portfolio

A recent analysis by Callan created a simple hypothetical portfolio for a 45-year-old saving for retirement. The portfolio contained only the S&P 500 stock index and the Bloomberg Barclays U.S. Aggregate bond index.

→ Continue reading at The Spokesman-Review

Related articles


Share article

Latest articles