TPiR and your financial decisions! 

Wednesday, June 13

Charles Jaffe of the Baltimore Sun has written a couple articles in the last two weeks paying homage to Bob Barker and The Price is Right. The twist? He adapts eight pricing games to your personal money-management challenges. What do some of the games tell us about investing? Here's a teaser:

Take Two: The Price is Right contestant is given a dollar figure and must choose two of the four items where prices total the target amount in order to win all of the prizes.

In fund investing, the dollar target is the amount needed to be "set for life," to achieve lifetime financial security. The key is picking mutual funds -- a few from the thousands of available choices -- that the investor believes can turn current and future savings into that jackpot.


Easy as 1-2-3: One of the simplest Price is Right games, the contestant must put three prizes in order of increasing value to win. In mutual funds, it's an asset allocation game, one where the investor prioritizes their holdings to meet their risk tolerances and goals. Confronted with a simple portfolio decision - how much to put into domestic stocks, foreign stocks and bonds, for example - the investor must decide how much risk to take and how to build their portfolio so that they can sleep at night while still generating sufficient return to reach the goals.


To read the rest of the two articles, click below!

TV's 'Price is Right' offers valid lessons in fund investing (6/5/07)
'Price is Right' offers more sound advice on fund investing (6/12/07)



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