My financial cents

Stock market is hitting new highs and I hope you are making money. Here is what you need to do according to me based on all the books and videos on finance I have seen. Tons of research as well on asset allocation.

  • Only buy index funds!  (even in your 401k, only have these funds)
  • If you need an advisor, please get a FEE ONLY advisor
  • If you can, definitely invest in a Roth IRA and max it out every year.
  • Do not get any annuities or permanent life insurance products (scam)

I have a 4 fund portfolio which i think works for 98% of average investors:

  1. VG total stock market index fund
  2. VG total international stock index fund
  3. VG total bond market index fund
  4. REIT index fund

You decide your own asset allocation.

The whole strategy here is long term .  In 20-25 years this is going to be any actively managed funds and save you A LOT on fees.

Enjoy.

@mjassal (please free to ask me any question at all)

Advertisements

Life Insurance and the Marketing for FEAR

Quick back story:

After getting all of my investing and retirement accounts in order a couple of my friends (one of them is a agent and the others father is an agent) suggested that I get Life insurance   I told them I already have term insurance and so does my wife.  They both told me that term is not good and I should get Whole Life Insurance. I asked them about the benefits of whole life and this is where the marketing of FEAR came out.  Here are some of the key phrases they both used:

– You might die broke

– Your taxes might be at 50% when you retire

– The world economy is so volatile you dont know when things will be stable

– The market (stock, financial markets) never returns anyone any real money

– You might die right after your term expires

– You need protection, term is not protection.

Since I am a marketer by trade, you have to know that these tactics do not work anymore.  10 years ago, maybe.  Right now there is so much information available to the common person that they can do their own research and look things up in an instant.  You should not market on fear since that does not do really well with anyone that has some sort of financial education in this case.

Only market on the benefits of the product. That’s it.  If someone doesn’t think the benefits relate to them at all or do not find anything useful in the product, then I would repeat the benefits or come at it on a different angle.  Marketing is about bringing value to the consumer not fear.  Needless to say, I did not buy whole life.

Manpreet Jassal

@mjassal

My humble advice to @Microsoft

caveman_invent_nag_437175

 

 

Microsoft recently came out with a new OS and tablet (surface) and the world was like “Umm.. ok, thats cool.”  The problem is Microsoft has taken the brand equity in our minds as an old software company for enterprises to utilize.  The cool factor does not apply to Microsoft at all and in my humble opinion the only way to fix it:

INVENT SOMETHING!

You have to stop copying what Apple is doing and make your own devices/solutions that will revolutionize the way people live their lives.  Just like what Microsoft did with Windows 95 and bought the power of user friendly computing to every household. As a marketer when I see the surface tablet ads, it does not leave an impression with me.  I forget the whole ad in seconds and move on to look at my iphone.  When I played around with it I asked myself what does this do that I already do not do with my ipad?  Answer: Nothing.

I am not an expert on technology (at least not yet) but in marketing (also positioning) you have to build a product that no one else has done before (a revolutionizing product) and take the first position category in someones mind. We know Microsoft has money, now all they have to do is get trendspotters, futurists and top minded technologists in a room to give is the next best thing!

Manpreet Jassal

@mjassal