Managing your money should be boring

Managing your money should be boring

Does investing all your retirement money in a single fund seem too easy, too good to be true? Even a bit boring?

If there is one secret to being an investor who does well in both good times and bad, it is this: managing your money should be boring.

You need to have a well-diversified portfolio that is professionally managed. If you invest in a balanced fund or asset allocation fund that diversifies your portfolio for you AND you automate your contributions - you will have a really boring financial life. Your money will be totally diversified, professionally balanced and managed, and your savings plan will be on auto-pilot.

Of course, if you do this, you will have nothing to talk about at cocktail parties when people bring up the subject of how they are investing their money. No one brags about having a really simple, well-diversified investment portfolio. But, really, that is a good thing.