Do you feel overwhelmed by investment choices?

From Carl Richards

Investing comes with so many choices today. At the beginning of 2013, there were more than 7,000 mutual funds to choose from. The number of exchange-traded funds crossed 1,500 in 2013. When you add all the share classes, these funds are available with close to 25,000 options, and that’s just a start.

 No wonder why people delay their retirement savings. This “Paradox of Choice” is a prime reason many people do not save enough for retirement. This is why having an investment philosophy is so important. It will enable you to navigate through most of the clutter and make a decision. For example if you only buy market index funds most of the 7,000 choices above will be eliminated from consideration. Remember the famous quote ” The greatest enemy of a good plan is the dream of a perfect plan.” Narrow the choices and take action.