All Investors Need a Game Plan to Play the Market Right

It's good to be back! For the many new readers of the site, this column marks the return of "Game Plan" after a six-year hiatus.

Here's some of my past work, and here's some quick background info so you'll have some frame of reference about me.

I'm 70 years old and I've been in some facet of this business for 40 years. I have a small boutique that does financial planning and investment management in Westport, Conn. There are six of us, and we make a living primarily doing two things. First, we manage mainly portfolios of mutual funds on a fee-only basis. We get all the funds at no load and no commission. Second, with three certified financial planners, we do financial planning on a fee basis. (Outside finance, I play handball several times a week.)

I want to start with some financial questions and comments that I've heard a lot about lately. These are the kind of things I'll write about, along with your suggestions.

1. To be a successful investor you need to have an investment philosophy. That means a system of beliefs that pull all the loose ends of investing together into a total "Game Plan."
   
2. Know what you can't know -- why projections and predictions are the least reliable foundation for making decisions.
   
3. The difference between asset allocation and diversification.
   
4. Why you can own good funds but have a lousy portfolio.
   
5. Why indexing can be worse than an oversized Manhattan pothole.
   
6. How do you put together your own playbook so you'll know when you are winning or losing?
   
7. Great asset allocation in a mutual fund portfolio doesn't mean you need to know the exact allocation to each asset class. That's one of the biggest mistakes an investment adviser makes.
   
8. When should you not roll your Roth 401(k) to your Roth IRA at retirement?
   
9. Do you really want to roll your company stock from your 401(k) to an IRA at retirement? There is a strong case for paying some income tax instead. What is it?
   
10. Who are some of the best mutual fund managers and best mutual funds, how do you find them, and why is a mutual fund portfolio vastly different from a stock and bond portfolio?