Investing Overseas Is Dangerous

I am asked on occasion about investing overseas in both established markets and emerging markets.


While it is tempting to invest in markets such as China, India, Brazil, Korea etc, it is also quite risky.


Besides the obvious risk inherent to investing in companies in countries outside the US that have much less stringent reporting requirements, there is also a currency risk.


The news lately has centered around established countries within the Euro zone and that has turned out to be a very dangerous place to invest.

I tell people that when you invest in a broad based US index fund, see VTI, then you are already getting some international and emerging market exposure since the companies within such as Caterpillar, IBM, McDonald's, Exxon & GE are already investing in those countries.
Stay tuned.

Pay Cash For Everything

Boomers are those born from 1946 to 1964 and as we know, all too well, some are starting to retire already and of course, all will sooner or later.

The biggest problem facing boomers is (drumroll please) - debt!

If you are a boomer with debt, cut it out, now.  Debt affects everyone but will affect baby boomers more as we retire.

While you may not have learned yet to pay for things with cash, its never too late to learn.  Use actual cash and / or a debit card.

Debt crushes your ability to save because by its nature, anything you haven't paid off is costing you money, a lot of it.  Revolving credit cards, auto loans, etc, are just terrible, you are paying 12-20% and your savings is maybe 1-2%.  STOP IT!

You may think you are older now and you deserve to buy this item you have waited for but unless you have the cash, you do not deserve it just yet.

PS.  Did you know that Sears #1 business segment is credit cards?