How do you know when the end of the year is almost here? When media outlets set their personal finance sections on autopilot and publish the same set of tried-and-true articles:
Reflections on the previous 12 months of economic news, most of which many investors have already forgotten.
- Predictions and forecasts by various market gurus for the upcoming year, almost none of which will be tracked and reported for accuracy next December
- Money-saving tips for the new year, many of which aren’t all that different from year-to-year (spend less than you make, make savings automatic if you can, make sure you’re putting enough in your workplace retirement plan to qualify for any matching contributions, etc.)
My favorite one this year appeared over the weekend on SmartMoney.com. The writers let us know that the tumultuous events of 2011 have taught us that, at the end of the day, a diversified and periodically rebalanced portfolio of stocks and bonds will yield better results than trying to time the market and pick which asset class is going to deliver you to the Promised Land:
Of course, clients at Woodward Financial Advisors have heard that advice before, since it makes up the core of the firm’s investment philosophy. In fact, I would guess that some clients have heard it so many times that they could have written this article themselves!