Grasshopper No.4 and No.2 are sponsoring a joint celebration Sunday for their graduates. Check your invitations!
From an old Johnny Carson rerun, he indicated that his financial broker was E.F. Glutton and E.F.Glutton had put him in some bad investments. Lessons learned from predator “Glutton” are as follows.
Do not buy “whole life” insurance. The insurance does build cash value but the cost of investing through insurance is prohibitive. Buy “term life”.
Do not buy annuities. The expense ratios are prohibitive and once you turn a lump sum of money over for an annuity, it is usually gone forever. (There are thousands of variations of annuities keeping your initial payment).
Do not select a financial broker that “churns” your money by moving it around. The broker makes money every time he trades on your account and you lose your a– as a result of exorbitant expenses.
Do not buy mutual funds that charge a “load”. That means you pay to buy the fund and many times you pay to sell. “Load” fees of 5% and higher suck up your money. By no-load funds. Vanguard! Fidelity!
When you want a financial adviser, pay for the advice. Do not let an adviser who sells products like insurance, annuities and mutual funds charge you a percentage or your own portfolio for advice. It is tainted, expensive advice. It is okay to pay for pay for periodic financial advise. Pay cash!
Do not invest in hedge funds. Hedge funds are managed by sharks who are inclined to eat their young.
Do not invest in penny stocks. You’ll lose your a–.
And so it goes. Managing your hard earned money is your responsibility. Read the books I have given you. You need to be President of your own companies, “Grasshoppers, Inc. LLC”.
I know this financial stuff is boring but paying attention might make your rich! Who do you trust more? E.F.Glutton or your Dad? Just saying!
Love,
Dad