By Laura Brown
Although most investors are anything but happy nowadays, David Goldman, who writes “The Laughing Stockbroker” financial column for ABC News.com, provided the April 17 Morning Forum audience with some laughs, as well as financial advice.
Goldman advocates taking the long view, saying that most people do not plan for today’s life expectancy, an average of 86 years for males, 91 years for females. People also fail to adequately factor the effect of taxes and inflation into their investment plans, he said. “A package of Twinkies cost 17 cents in 1976, and today they’re $1.10. How much will your Twinkies cost when you retire?” he asked.
Goldman says that the best time to invest in the stock market is “when it’s open”. He said that it is important to find a broker who has experience, noting that most stockbrokers operating today have never been in a downturn like the current one. He said, “The average writer for Money Magazine is 26 years old, and has $600 in the bank. Did you notice they no longer have sell recommendations? That’s because if you had bought what they told you to sell, you would be ahead of the people who bought what they recommended buying.”
Goldman advised buying quality stocks and holding onto them. He said he likes Microsoft and Cisco, because “technology isn’t going to stop.” He also advocated long-term care insurance, which only 4 percent of 65 year-olds have. However, he also advised the group to “take your family and life seriously, but take yourself lightly.”
Goldman, who studied economics under Kennedy administration chief economic advisor Walter Heller, and worked as a broker for Shearson Lehman Hutton, Smith Barney, also worked as a stand-up comedian for more than 14 years, opening for Jerry Seinfeld and writing for comedian Gary Shandling.
The Morning Forum is a members- only lecture series held at the United Methodist Church of Los Altos. Membership is closed for this year. To get on a waiting list for membership, write to: Morning Forum, P.O. Box 274, Los Altos 94023-0274.
