What Is The Risk Involved With Retirement Planning
Things you can’t and you need to control and hold on to with every fiber of your being the things you can control because there’s so much you can. The risk has its place but you have to understand what that risk is and you also have to understand what fees you’re paying and the laws of the financial world are written as such that your your only shown those fees at the very beginning of an investment in a in a prospectus which is about 300 pages thick that nobody reads that even Alan Greenspan formerly said that if you had a doctorate in mathematics you wouldn’t be able to understand some of this stuff and that’s that way for a reason
I am personally not a proponent of mutual funds they are a watered-down version of something called the modern portfolio theory which was written in 1952 by a guy named Harry markowitz and essentially what he said was that the ideal portfolio would be let’s hold 50% of your money in a stock that pays when it rains and 50% of your money in a stock that pays when it shines it rains In his hypothesis no matter what you would end up ahead well that’s wrong If you have 50% of your money and something that pays when it rains and 50% of your money and something that pays when it shines and it rains the best you’re going to do is end up even
The problem with that is mutual funds after banking when retail in the 1980s mutual funds are watered down version where upon number one you’re dealing with a salesman so they just want to sell you something The mutual fund companies are more concerned with the adequate marketing of their accounts than actually providing you something of value and then because there’s about 15 different people that need to get paid there are astronomical fees so risk has its place but if you’re going to invest in something that has risk you need to know that risk You also need to know those fees.
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