If you are a client of Foster Group and have met with your advisor recently, you may have discussed what’s important to you, what we are planning for as it relates to your goals, and what you hope to achieve.
Index funds are popular investment tools for good reason. They are low cost, effective ways to capture market return. Choosing to use index funds is only half the battle though; you must use them correctly to truly benefit.
Sometimes headlines are right, but remember they are created to get your attention, not necessarily to provide you with helpful information.
Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
