066 Financial Excellence: What Investors Should Know about Diversification

28 Jun 066 Financial Excellence: What Investors Should Know about Diversification


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Episode 66: (Live Show) What every investor should know about asset classes and diversification with guest Pamela Otten, June 28, 2011.

Today we welcome special guest Pamela Otten (the Financial Mom) to the show to discuss what you need to know about asset classes and diversification with your investments. Pam is an investment adviser and host of the radio show “Intelligent Investing with Pamela Otten.” Her main focus is to help women become investing stars. You’ll learn a lot from listening to her in today’s show.

Living In Financial Excellence airs LIVE every Tuesday at 10 a.m. CST. You can watch live and join the chat at financialexcellence.net/live-show

Show notes:Matt & Janelle Recording the Financial Excellence Podcast

  • You never want to put all your eggs in one basket. I think we all know that but surprisingly a lot of us do exactly that without even knowing it.
  • There are three main asset classes for investments: Equity (stocks), Fixed Income, and Cash. Beyond that, there are lots of smaller categories of asset classes. You need to know which ones you’re investing in and why.
  • I’ve felt for years that you should get out of debt before investing. Pam agrees, and shares her views on why that’s so important.
  • Pam reveals why target date investing funds aren’t as good as they sound.
  • Pam wrote a blog post about how to find an investment adviser you can trust. It’s written for women, but it definitely applies to men too. If you’re not sure about the level of service you’re receiving from your adviser, you need to read her post.
  • There are some fancy terms like overlap, correlation and re-balancing that are affecting your portfolio, and not necessarily in a good way. You need to know how they impact your investments. Pam explains them today,
  • You can influence what we talk about in future shows. Simply fill out this three-minute survey.

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