Ryan Ermey: Whether you’ve got a long robust credit history or a slightly spottier record, everyone could use a boost to their credit score. Kiplinger contributing editor Lisa Gerstner, tells you how to get your number up in our main segment.
Ryan Ermey: On today’s show, I give out some fun money stock picks, and Sandy and I delve into renting your home and timing the market in a new edition of Financial Fact or Fiction. That’s all ahead on this episode of Your Money’s Worth. Stick around.
Ryan Ermey: Welcome to Your Money’s Worth. I am Kiplinger’s associate editor Ryan Ermey joined as always by senior editor Sandy Block. Sandy, we have an investing related opening segment today. I wanted to ask you, have you ever had any sort of humongously successful stocks that you’ve invested in?
Sandy Block: No, I haven’t. But my husband often reminds me that he wanted to buy Apple at 10, and I said, “That company is over and nothing’s going to happen.” We don’t buy individual stocks. We put all our money into index funds and our 401(k) plans.
Sandy Block: Now if I had taken that advice, maybe I wouldn’t be sitting here right now. Yeah, I think that I have always been a little timid about doing that, but I’ve always been curious . . . stories about people who actually have pulled it off.
Ryan Ermey: Yeah, and it gets to something and I have written about a little bit in the magazine, which is you should really have a core portfolio before you venture into individual stocks. By the way, everyone has a story that they could have bought Apple or they could have bought Netflix. My sister claims to have come up with the idea for StubHub before StubHub actually came out. Everyone has stories like that.
Ryan Ermey: But I wrote about that because I only own one individual stock, which is Amazon. But I didn’t buy that until I had already had an established, diversified core portfolio that is for my nest egg. That’s in line with what a lot of CFPs that I’ve talked to have told me, which is that you should take a core and satellite approach.
Ryan Ermey: Your core portfolio should be diversified, low cost, buy and hold, a long-term portfolio that’s going to make up the vast majority of your assets. Then you can use a sleeve of your portfolio to maybe get into some more actively manage stuff, some things that you are going to try to use to outperform.
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