January 7, 2015

 

paulDear Friends,

One of my commitments for 2015 is to reach out more to young professionals and first-time investors to help ensure their future financial wellbeing. I hope those of you who are in retirement, or close to, will join me. Our children and grandchildren, nieces, nephews, young friends and protégés all need and deserve our guidance.

To this end, I plan to update and upgrade my eBook, “First-Time Investor: Grow and Protect Your Money,” available free from my website’s homepage. I may even change the title to make it more appealing to young investors. Besides updating information and adding ETF portfolios, I want to focus on helping young investors set and stay committed to their long-term financial goals. If you have ideas or anecdotes to share along these lines, I’d love to hear them, so please email me.

Since quotations are a great way to reduce complex concepts to a few memorable words, the book will include some of my favorite investment quotes. Here are a few from John Bogle, founder of the Vanguard S&P 500 Fund, the first public index fund. I hope one of these quotes about expenses might be memorable enough to make it to the first-time investors’ as well as your own list of favorite investment quotes:

“We investors as a group get precisely what we don’t pay for. So if we pay nothing, we get everything.”

“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.”

“Common sense tells us that performance comes and goes, but costs go on forever.”

“The two sources of superior returns of the index fund: (1) the broadest possible diversification; and (2) the tiniest possible costs.”

“In the investment field time doesn’t heal all wounds. It makes them worse. Where returns are concerned, time is your friend. But where costs are concerned, time is your enemy.”

Here’s my favorite Bogle quote on commission-motivated salespeople in the investment industry: “It’s amazing how difficult it is for a man to understand something if he’s paid a small fortune not to understand it.”  I hope this quote will be a reminder to all investors of the risk of mixing a commission and investment advise.

To Your Success in 2015 and beyond,

Paul

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