Pros offer 11 tips on saving, spending in 2011

Pros offer 11 tips on saving, spending in 2011

The San Francisco Chronicle’s Kathleen Pender in her Sunday Net Worth column offered tips from 11 financial service professionals, including Dave.  Here was what Dave had to say:

Get over it!

Dave Yeske, managing director, Yeske Buie

If it ain’t broken, it ain’t broken.

Too many people are still traumatized by what happened in late 2008 and early 2009. They are saying the system is broken, the economy doesn’t work anymore, the financial markets are dysfunctional, we’re entering a period of diminished economic growth, low equity returns, etc. The evidence for these views ranges from slim to nonexistent.

People were also traumatized in October 1987, in 1991 after the first Gulf War, and again in 2000 and 2001.

My advice is simple: Save at least 10 percent of your gross income, and invest what you save for the long run. This means mostly stocks or stock funds, so if you’re still nervous, get over it! You’ll never reach long-term goals if you stick with bonds or money markets.

Diversify (for most people this means mutual funds including large cap, small cap, foreign and domestic) and rebalance from time to time. This involves selling asset classes that have outperformed and buying those that have underperformed to maintain a fixed allocation to each asset type.

Rebalancing once a year is plenty for most people and can be done automatically in many 401(k) plans.

Read more: