Beware of the Words “Always” and “Never”
When it comes to finance, there are very few absolutes. If you’ve ever heard someone say that you should “never” buy a certain product — or, conversely, you should “always” have XYZ in your portfolio — it’s a good idea to look at that advice with a highly skeptical eye. Or going the other way, has someone ever told you that “XYZ financial product always works for everyone, no matter who you are!” Well, I’m here to tell you that there’s virtually no case where either of those words of advice are true.
Financial instruments — stocks, bonds, annuities, CDs, mutual funds, etc. — are really just tools, designed to perform one or more specific functions, with the goal of helping you achieve certain financial goals. When used in the right circumstances, they may work very well; when used incorrectly, they can be a real burden.
In this week’s edition of Lucia Capital Group Weekly, “Professor” Rick Plum provides some insight on what you may want to consider before buying (or getting rid of) any financial product, and why you may want to avoid the absolutes of “always” and “never.”
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