#719 investments

I had to have a conversation with my broker a few weeks ago as I made a contribution to my IRA before the tax deadline.  He is a nice guy, but I hate when I have to call him.  Even though I have an MBA, he speaks a foreign language.

"Do you want a traditional IRA or SEP?"  "I think we should invest in the S&P ETF -- maybe a few shares in mid-cap and ishares in small cap or international."  "We could buy DWM or DEM."  And on it goes.

There is something to be said for the old-fashioned bank passbook savings.  You give them $1000 and the balance goes up by $1000.  The rewards certainly have less potential than by investing in the stock market, but the numbers never go in reverse and it is math that can be understood.

Be intentional about your trade-offs between reward and complexity.  Sometimes, like when investing, it may be worth it to muddle through the alphabet soup or to pay a broker to invest for you.  But QuickBooks may work just fine for your personal finances vs. hiring an accountant.  A cake mix may suffice instead of baking a masterpiece by hand.  Throwing down some grass seed might do the trick instead of researching landscapers.  Asking for a wine recommendation may be better than testing a multitude yourself.

Your time is a valuable commodity.  Be conscious of how you invest it.

-- beth triplett
leadershipdots.blogspot.com

@leadershipdots
leadershipdots@gmail.com