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Well it's a small investor we -- have literally thousands of low cost investment options at our fingertips.
But will too many options actually hurt your portfolio joining me now Joseph -- CEO of United Capital financial advisors that author of the money code.
Martin LeClair -- principal and portfolio manager for Barrick yard advisors and Allen have to author of you can never be too rich Alan I'll start with you show.
8000 ET -- and mutual funds out there can you have too -- Capsule academy -- I think about this you know I go to Las Vegas so we put 101000 dollars on -- roulette table we cover all the numbers.
There's always going to be winners and losers in there and it's easier and edit and too much diversification is definitely recipe for certain -- return so.
This simple -- somebody makes it the more effective portfolio is always going to be because you can rebalance and you can understand what you're investing in you can watch it.
I'm not be so confused with all the different things have out there.
Martin it and it's going to be a bitcoin ETF and we talk about ETF says that as if they're the most positive thing in the world but -- How do you choose the right lines.
Well it depends on not -- investment objectives and so forth I guess -- posting your question is that one should don't ETFs.
And one of the things that we have a problem with the PT -- is that there's so as a real flaw in their whole nature and that is as that is an investment manager.
To me the most important thing is the investment merits of the component.
Of the index.
And for ETF manufacturers they're most concerned about the liquidity.
And so liquidity trumps all which means that sometimes great investments don't end up inside the -- Wow interesting and there are so that there's so many of them now -- have ridiculous.
Names and things -- invested and I think that god what street crazy with ETF they're out of control.
So I -- ask -- this question -- which I think is probably the most in quite important question for small investors and that is this what should you be willing to pay.
For a mutual fund or -- -- Well I think if you're looking to invest in something very plain Vanilla very easy to understand like an S&P 500.
Or the Dow -- common average that everybody knows about and you should same pay as little as possible.
So the simply the investment the -- less you should pay.
We huge proponents of saving money wherever you can that's an easy place to do it.
When you go into more interest -- investments like small companies -- in the national things that are not as frequently non.
Then you might have to pay a little bit more money so instead of paying ten or fifteen basis points -- 110 of 1%.
You might have to pay a little bit more than that a lot we recommend for people -- as soon as you can afford it.
Working -- advisor can help direct you because they just so many choices in different ways to get similar investments.
That it can make a huge difference where the.
And I love Costello is we're looking -- or looking at.
-- you know ten basis points fifteen basis points people were -- and have very low cost investment.
Alan -- -- when it turned out change the topic a little bit to bond funds we talked about what's going on in.
In the bond market.
Their risks out there for small investors many of who have been so scared to stocks they put everything into bonds and behind finds what -- telling them now.
Instead of long term bonds for sure because there's only one way interest rates -- -- -- -- now that's tough.
So the longer do the longer the duration long maturity on those bond funds the more than gonna go down as interest rates go up so is the first -- to get out of long term bonds.
Second rule is if you can afford to do so really think about getting out of funds altogether and go into the individual assets in the funds themselves by individual bonds.
And lot of them because by lot of revenue bonds you're going to have a maturity dates and assure you that you principles coming back as long as the company's good quality company.
And as the and as the principal comes back you can reinvest -- to -- the bond at presumably higher interest rate.
So get out of those long term bonds and go -- and really look hard at flattering bonds to protect your money.
I like -- Martin what do you say is that the best advice.
Well I totally agree with that -- the only thing I might add is.
People have to also avoid things like electric utility stocks and RE ITs and other highly indebted companies -- other types of investments that are heavily dependent on the cost some money.
-- how much choice are important sure go right ahead.
-- there are bond funds that have maturity dates and then so if somebody wants the diversification of a bond fund.
There are some very treasures out there -- can go to bond funds that have maturity dates -- avoid the hassle of flattering individual bonds.
-- well that's good news okay Joseph.
Quickly we don't have a lot of time left but I do -- to get to this topic I'm constantly -- consumed.
By looking at that playing field for individual investors is it even do we get a fair shake are we handled.
Even matter that's -- And I'm very concerned about that.
-- news from -- -- Reuters they will no longer give exclusive investors early access to widely followed consumer confidence index.
So they are changing their policy on this they used to give this information out early.
Here's what Reuters said.
Thomson Reuters strongly believes that news and information companies can legally distribute nongovernmental -- an explosive news -- services provided to be paying subscribers.
What -- say about this because.
I feel like there are other indexes that they're gonna hold back and share with some of their clients I just think that's unfair and you -- I say I.
Agree completely with you that that we did -- against facts -- and -- information universe right now and those that have money to pay for information -- panelists with me we spend a fortune on getting information that we put to help our clients.
The truth is for the individual.
Unless you do things very simply the more complex things would come there is a huge premium to having knowledge and having information and that is why.
Again it is quite unfair for the individual to try to compete.
Because they just don't have access to the level of information and the breadth and magnitude.
That -- -- exposed to every day you know it's just a matter of how much time you have -- the day.
Most about folks are working all day -- had -- their family doing other things you just can't possibly do this full time it's kind of like working with a doctor.
You don't have the time to know how to deal with things in the paper -- professional -- keep it simple the most important thing is.
The real important stuff is how much risk you're taking and keep it simple OK and become more complicated when you have an advisor that you can work with Joseph -- -- -- thanks for coming -- -- great -- appreciate your time.
And be right back.
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