| They do not have time to study to learn how to... 578 |
[Feb. 11th, 2010|02:34 am] |
They do not have time to study to learn how to invest, so they rely on the expertise of the manager of a mutual fundAlso, because the mutual fund includes many different types of investments, they feel their money is safer because ii is "diversified
This group of educated middle class subscribes to the "diversify" dogma put out by mutual fund brokers and financial planners
The real tragedy is that the lack of early financial education is what creates the risk faced by average middle class peopleThe reason they have to play it safe is because their financial positions are tenuous at best Their balance sheets are not balancedThey are loaded with liabilities, with no real assets that generate incomeTypically, their only source of income is their paycheckTheir livelihood becomes entirely dependent on their employer
So when genuine "deals of a lifetime" come along, those same people cannot take advantage of the opportunityThey must play it safe, simply |
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