|Mitt Romney, former governor of Massachusetts, 2008 US presidential candidate. (Photo credit: Wikipedia)|
Washington, Jun.9, stock advice .- I was surprised by many of the investments, or lack thereof, when I came across President Barack Obama's most recent financial disclosure. The president has been extremely passive and risk-averse with his money over the past , leaving most of it in Treasurys or . The lessons the first family's portfolio holds for ordinary investors are to take a little risk and that is king.
|Smart Move #1: Don't Give More than His Due|
|A media frenzy was created when Romney released his tax documents showing an effective rate of 14.1%. Democrats seized on the number to depict Romney as an elite compared to the Obamas and their 20.5% rate. Until Congress simplifies the tax code, there be ways of minimizing your tax burden -- and you should take advantage of them.
|Smart Move #2: Invest In Foreign Assets|
|Among the few investments Romney holds in his personally managed accounts is up to $2 million in issued by foreign governments. These bonds, with rates ranging from 3.5% to 6.75%, are issued by some of the most financially sound countries, including Australia, Canada, Sweden and Norway.
|Smart Move #3: Be Diversified To The Max|
|While the president's portfolio held only shares of a passively managed S&P 500 fund, Romney is stacking his portfolio with funds that target a mix of strategies.
|Mistake #1: Letting A Quick Decision Change A Good Long-Term Strategy|
|Ahead of the public scrutiny of a political campaign, Romney's assets in a trust managed by Thornburg AAPL).
were sold off completely. The trust held almost $2 million in names ranging from obscure small-cap companies to large tech bellwethers like Apple (Nasdaq: