Tadas Viskanta of the blog Abnormal Returns was interviewed on MoneyShow.com in early January. He says some core financial knowledge is crucial in today’s world, and explains why many investors are approaching the situation inefficiently. Pretty important themes, on which I agree:
For the vast majority of investors, I think they’re probably pretty safe to largely ignore (conflicting array of opinions that we all hear constantly), especially around year-end…
This is why (and not only because of this):
…Every individual investor has essentially has one client, and that client is themselves. They know best what is their investment horizon, their risk tolerance, their education level…
On getting started:
…for most people, the most challenging part of this process (investing) is actually just getting started.
…investing is now cheaper and easier than in fact it’s ever been. In fact, there’s more information and there’s more data available than there’s ever been before. …there’s really never been a better time to be an individual investor.
Source: Get the Investing Education You Need — MoneyShow.com. January 06, 2012.
I do not agree though that asset allocation is one of the last decisions investors should take. It’s not about ETF availability and cheapness, it’s about getting the full picture right from the beginning.