Diversify to Minimize Risk

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What you are describing is very conservative, traditional investing. I’m sure a lot of people are thinking that with the current situation that most of us didn’t anticipate, maybe we should do something different. But the important thing is to realize that we should continue to follow this plan of diversification now. As we get older, we should gradually move more into fixed income and away from stocks. I have generally been following this plan and although I have had some pretty significant losses, I’m still getting by and I’m not planning to change a thing. It’s important not to panic and get away from the only course of action likely to get us through the unexpected. www.santaclaussyndrome.com

R. Lamar Smith, CPA of GA 12:06AM March 26, 2009

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