From planning to investing (Part 2 of 3)

confusionOnce you have your plan organized. Then you generally have to make two fundamental decisions when you invest to make the plan actually come alive and happen.

The insert breaks these decisions down into two simple ones:

First decision: Active vs Passive?

Once you’ve decided to use a passive approach, then

Second decision: Index vs Asset Classes?

A BIG PS. However exciting this part of the topic is … don’t forget that planning is more important! How much you save … and how much you spend … will actually have more of an effect on whether your are successful, or not, than investing does. Saving $1,000 will be more successful than saving $100, even if the one saving $100 gets a better return.

More on Passive or Index

More on the Pros and Cons of different investing philosophies.

Here’s Part 1 of this series and Part 3.

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About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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3 Responses to From planning to investing (Part 2 of 3)

  1. Larry Frank, Sr. September 2, 2013 at 3:03 pm #

    … and here’s a short video, on YouTube, on Keeping it Simple with Passive Investing (Buy the market and hold) through indexes http://www.youtube.com/watch?v=8WVVPgaclH8&feature=youtu.be

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  1. From planning to investing (Part 1 of 3) | Better Financial Education Blog - August 4, 2013

    […] Click to go to   Part 1   Part 2 […]

  2. From planning to investing (Part 3 of 3) | Better Financial Education Blog - September 4, 2013

    […] of investing … or better put … the plan as to how to approach investing is addressed (Part 2), Part 3 can dive into details about the concepts that should go into developing a portfolio to […]

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