Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Thursday, November 10, 2011

Observations on "Conventional Wisdom"

Kim Clark offers some interesting points on so-called "conventional wisdom" in "Investing: Throw Out Conventional Wisdom."  Many have to do with the all-important subject of asset allocation.  IMHO, this is where investors should focus their efforts rather than spending the bulk of their time picking stocks and trying to figure out which "guru du jour" to follow.

From this perspective, Clark's overview of "broad framing" is worth thinking hard about.  It really isn't as simplistic as she presents it, though.  For example, people have to view their own housing situation and whether they would be willing to downsize, take a reverse mortgage, etc.  This will determine if it definitely is part of their portfolio and should be taken into account as a negatively correlated asset with equities.

Her thoughts on individuals reaching peak financial capability in their mid-50s is worth thinking about, as well.  It definitely emphasizes the importance of working through and setting up the retirement process early on.  It is interesting that many become responsible for their rolled over 401(k)s, etc. just as their financial acumen is decreasing - a phenomena little discussed.


  1. That was a very interesting read! Her subtle reminder that you may not have the same mental energy when your are old that you have now, is spot on!

  2. I agree that the 50's tends to be a very financially productive year for most people, provided that economic outpatient care is kept to a minimal. Incidently, this is the decade that most people become millionaires. She has an interesting way of presenting ideas. Good find!