Broker Check

Practical Planning Tip: Investing is Like Birthday Cake - Eating Your Cake

February 28, 2024

Today we will discuss Eating your cake: So, as we discussed the past few days, The basics of investing involve understanding the important asset classes to include in your portfolio and knowing what you should avoid. The final component is the correct implementation. So, The best way to eat cake is from a plate with a fork or spoon. A plate with a utensil makes the consumption of cake efficient and less messy.


Similarly, the simplest and most efficient way to implement your portfolio is using mutual funds or Exchange Traded Funds (or ETFs). They are liquid, easy to buy and sell, and allow you to buy a whole basket of stocks and bonds within one fund so you stay diversified to help limit risk. Deciding which funds or ETFs to purchase does require some education. That is beyond the scope of my 2 minute video. However, you can hire someone to help you OR do your own research online on which ETFs and mutual funds to buy.


In my upcoming video series I will continue to discuss the basics, but will focus on financial planning utilizing the “bucket approach.”


You can WATCH the full video here.