Welcome to this week’s Simple Inspiration Interview. With this week’s stock market volatility, I happy to interview Barbara Friedberg.
- A one stop destination for investing and wealth building strategies.
- Less money stress and more money control.
- Direct access to an expert in investing and in financial matters.
- Strategies for efficient money management.
- Tips to make your money grow while you sleep with basic investing principles.
- A how to guide for greater saving, better living, and more wealth through investing and smart money practice.
What was your reason for writing your latest book?
All of my books are written to make investing and building wealth clear and easy to implement. I want people to understand that they can stop living paycheck to paycheck, get out of debt, and become wealthy with a few smart money behaviors.
What is one of the biggest challenges or roadblocks to investing do you see many people face?
Overwhelmed. They think it is too hard.
For someone who has never invested where is the simplest place to beginning?
If you have a workplace retirement account, direct 5-10% of your income into a target date mutual fund.
No workplace retirement account? Open a discount brokerage account and immediately set up a bank transfer into the fund. Have that money invested in a target date mutual fund. (If you have trouble, call the company for help)
How should someone go about setting their allocation?
Wow, that’s more than a few sentences. I lay it all out here in this free micro book, How to Invest and Outperform.
In general terms, if you’re young and can handle some level of risk, you’ll hold a greater percentage of stocks and stock mutual funds. If you’re older or a more conservative investor then tilt your allocation towards bond funds.
How often would you suggest reviewing your allocation?
Review your allocation every few years. Rebalance back to your preferred allocation once per year.
Should you invest differently for retirement vs non-retirement assets?
Any money you need within 5 years or so should not be in the stock market. That money should be in CD’s, money market funds, and I bonds. Money you need in the intermediate and long term can be investing in the stock and bond markets.
The book discussing using index funds for various reasons. There is any situation which it would be better to use an active manager vs index fund?
That’s a great question. I understand that there are some good active managers and you may prefer to try your luck with one of them, with the hopes of outperforming the markets. That said, there’s abundant research supporting the use of index funds and the difficulty active managers have beating the markets.
Besides your new book. What book, blog, or podcast would you suggest to someone who is looking to begin investing or looking to improve their finances?
The Elements of Investing by Malkiel and Ellis is a classic. And it’s only 100 pages! William J. Bernstein also has a great book, If You Can: How Millennials Can Get Rich Slowly.
Thanks for sharing your investing views. If you are interested in learning more about Barbara, she offers some good information for the beginning investor to the individual who wants to beat the markets. Here are two resource you can check out:
If you want to start at square one of the wealth building process, pick up How to Get Rich; Without the Winning Lottery from Amazon.
Next, if you’re ready to grow your future wealth to 6 or 7 figures with investing, buy and read Invest and Beat the Pros-Create and Manage a Successful Investing Portfolio.
To read previous interviews in the series click below
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If you are interested in sharing how you have simplified your financial life, send me an email and I will follow up with you. Enjoy the rest of your week. Til next time, take one step at a time to simplify.