Would you like Option 1, the most consersative mutual fund we have that is very safe and secure (and offers a terrible return, usually not keeping up with inflation)? How about Option 2, which is a little more aggressive, but focuses on growing your funds faster (even though the last 3 years the fund lost 15% and the manager got fired)? Or, Option 3 might be suitable since it’s a mix of solid, safe investments and a few growth assets thrown in as well (and by doing this, we try to make sure it sounds good to almost anyone)? Of course, the text in italics is what they probably SHOULD tell you, but they never do. Truly, it’s incredible how many people just trust their bank or financial advisor, and never really question what it is they’re being told to do. I wrote about this last year (just do a search for mutual funds on this blog) so I’ll save you the rant again this year. However, if you own ANY investments – whether it’s mutual funds, stocks, equities, bonds, LP units, real estate, whatever — and you DO NOT understand what the investment is, do yourself a favor and make 2008 the year you’re going to FINALLY understand what your money is doing for you! The reason that most people fail financially is because they never DECIDE to learn the important things about money and investment. Most people don’t want to be accountable for their results.. so they hand their money over to others, hoping and praying that it will all turn out. Don’t be one of the masses. Average people get average results. It’s NOT hard to get above-average results and retire wealthy — in fact, if you just read all the entries on my blog (and I apologize for the constant references and stories about my dogs, but hey, I love them), you’ll become a more knowledgeable investor. No one will take care of your money better than you will, so don’t delegate this incredibly important role to someone else — make a commitment that you’re going to learn about money and investing this year. A great book called The Millionaire Next Door outlines that wealthy people typically spend at least twice as much time on their financial affairs, educating themselves, and managing their investments, than those who are not financially successful. The numbers speak for themselves. If you want to be financially free, the ONLY way you can do it is to learn about money and investing. ]]>