Finding Inspiration

You can’t wait for inspiration. You have to go after it with a club.

— Jack London

Investing Strategy — From the Mouths of Babes

Is investing easy enough for children to do? Evidently so! Paul B. Farrell, author of ‘The Lazy Person’s Guide to Investing‘ wrote about how an 8-year-old crafted a portfolio that not only outperformed the S&P 500, but also his own professionally managed pick.

How did he do it? Well, primarily by investing in low-cost, well diversified mutual funds that cover the entire market. Sound familiar to all the FPU people out there?

Week 6 Homework

This lesson is titled ‘Understanding Investments’, and discussed investing in equities, things to do and things to avoid. It focused on empowering you to make informed decisions and take charge of your financial future.

The homework for this week is:

  1. Read Chapter 11 in Financial Peace Revisited, specifically the section titled ‘Simple Discipline is the Key’.
  2. Read Chapter 12 in Financial Peace Revisited, specifically the section titled ‘Of Mice and Mutual Funds’ and ‘To Load or Not to Load’.
  3. Fill out the 2nd column of the Financial Snapshot form. A copy came in your materials, or you can do it at the FPU Member Resource Center. If you do it online, you are entered in a drawing to win an iPod.

Lastly, we have some additional reading on this subject, if you are interested.

The Definition of Finance

Money is a good servant, but a poor master

— Unknown