Friday, May 9, 2008

Building wealth part 4: educate thyself

Complete lack of even basic financial knowledge among doctors is nothing new. There's no better way of killing an otherwise lively conversation than mentioning the choices of mutual funds by a particular 401k provider.
However, what truly amazes me that despite of adverse economic conditions, increasing pressures from insurance companies and HMO's, diminishing wages and growing pessimism and dissatisfaction among many doctors and other professionals ( here's a link to a recent NY Times article titled "The Falling Down Professions" to illustrate the matter), they continue to be oblivious about their own financial matters. And we're talking about some of the most educated people in our society!
So for me, my journey to financial freedom started with education. Surprisingly, the good literature on the matter is not advertised on TV or radio. I had to really search for books, articles and blogs that would be useful for my financial knowledge.(I forgone the glossy booklets from major brokerage houses and 401k providers.)
Since the mutual funds are the main investment vehicle created for the middle class ( and we are the new middle class), I decided first to look into the mechanics of an average mutual fund. I'll describe my understanding of it in my next post.

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