Hi All,
I am writing you from the coffee shop inside that famous Portland institution – Powell’s Bookstore.
Among the books we got today was a copy of Jane Bryant Quinn‘s latest book Smart and Simple Financial Strategies for Busy People. I haven’t made it very far, but am impressed with her recent work and did want to share with you some of the principles that Quinn outlines for achieving financial successes.
1) Keep things simple. According to Quinn, most of what Wall Street is selling is overcomplicated and overpriced. In this case, I fully agree with her. Its not necessary to pay a professional up to 6% in management fees to have them buy reverse convertible bonds, dabble in commodity futures or buy puts and calls on stocks. Instead, Jane Quinn says you should consider simple, low cost, high quality products. In our view, index funds are great for this, as is buying shares of high quality companies directly.
2) Make It Automatic. Quinn is really a fan of this approach. She basically argues that you should set up a system to routinely take a portion of your paycheck that’s allocated to saving and investing. If you start small, – say with 5% – then you hardly ever miss the money. Theoretically, you can slowly ratchet your savings deduction up to 11% or 12% of your income – or however much you think is needed. For our part, we draw heavily on automatic payroll deductions to do what Quinn recommends. This system works because you never see the money so you’re not tempted to spend it.
Smart and Simple Financial Strategies is published by Simon and Schuster at powells.com. Check out a copy if you’re interested a comprehensive yet witty discussion of moving your personal finances ahead.
Best,
James
*Smart and Simple Financial Strategies for Busy People*, by Jane Bryant Quinn
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