How Many Mutual Funds Is Too Many?

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You’ve probably heard for years that diversification is one of the keys to successful money management. And as many employees of scandalized companies have recently learned, lack of diversification can mean the difference between a comfortable retirement and possibly none at all. (Note, however, that diversification does not ensure a profit or protect against loss in a declining market). But are you one of those investors who collect mutual funds like other people take aspirin? If two are good, then four must be better?

It’s easy to get into the rut of owning an overabundance of funds. You might have … Read the rest

The Simple Mistake Many IRA Owners Make

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Most IRA owners, if asked what their major IRA concern was, would tell you it’s protecting the account from losses. Naturally, if you have $500,000 in your IRA, you are probably worried about losing it in a down market. However, there is a problem much simpler that folks keep missing which could cost your family thousands of dollars.

What is that problem? It’s the beneficiary form. Why would the beneficiary form cause so much trouble and cost so much? Because of the complexity of the laws surrounding the beneficiary designation and the lack of knowledge of most investors (and unfortunately … Read the rest

How Many Mutual Funds Are Too Many?

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You’ve probably heard for years that diversification is one of the keys to successful money management. And as many employees of scandalized companies have recently learned, lack of diversification can mean the difference between a comfortable retirement and possibly none at all. (Note, however, that diversification does not ensure a profit or protect against loss in a declining market). But are you one of those investors who collects mutual funds like other people take aspirin? If two are good, then four must be better?

It’s easy to get into the rut of owning an overabundance of funds. You might have … Read the rest