Generally, before we make a purchase, we shop and compare prices for the product we want to buy. We even get a little excited when we buy something at a really good price – we like to tell people about how well we have purchased. This comparison shopping often involves many factors besides price; but, almost always, price is a major consideration in our purchase decision. Should we follow the same practice in our choices about investment products? The answer is a resounding Absolutely Yes!! As I mentioned earlier, there are more factors than just price in our buying decision. However, today, with respect to making an investment purchase decision I am going to focus exclusively on price.
As part of our business we work with individuals and families helping them to develop an investment and financial plan. We are often asked “what and how should I teach my children about money?”. We hear that question frequently enough that we thought we would share some of the advice we give our wealth management clients. Because, regardless of whether you are a 401(k) client or a private wealth management client, these principles have application for each of us. Money is not Evil – We have all heard the saying, “Money is the root of all evil.” Let’s take a step back and truly examine that statement. The same dollar can be used for delivering aid and comfort to someone less fortunate or
Trade Wars! Trade wars are typically a weapon of last resort after discussions and negotiations have failed to produce a satisfactory result. Essentially, it is entering a game of chicken with your trading partner(s). The hope is that by making their products more expensive, by imposing tariffs, you can “level” the competitive playing field and allow your side to improve their production capability and capacity and remove what is perceived as an unfair subsidization of the product by the other side. The “chicken” part of this strategy is that your side will be able to increase their ability to provide the goods sooner than the absence of the goods starts to cause economic problems. While
