If there ever was a time to put together a smart financial plan, one that will serve you well for the rest of your life – the time is now. Welcome to The Coffeehouse Investor.

Creating an intelligent plan means taking control of your financial destiny. To do this, you will have to let go of some preconceived notions of what investing is all about.

This is critically important, especially during these challenging times when stock markets and corporate bond markets are having one of their worst years on record. You have a decision to make – you can leave your financial future up to the whims of lawmakers and their bailout plans, or you can take charge of your financial destiny. It is all up to you.

Ten years ago, in the midst of a red-hot stock market fueled by the unprecedented rise in technology stocks, I stepped away from a 15-year career working for a major brokerage firm to create The Coffeehouse Investor. It became clear to me that for every investor who was interested in uncovering the next hot stock touted by the Wall Street crowd, there were thousands of investors who didn’t care about the next Google, or Microsoft, or Starbucks. These were people who were too busy getting on with their lives, yet they still demanded a successful portfolio.

Our philosophy is based on three simple principles – principles that you already know to be true:

1). Don’t put all your eggs in one basket. Because different markets have different risk characteristics, it makes sense to invest in several different asset classes based on your need and ability to take risk.

2). There is no such thing as a free lunch. Because the stock market is relatively efficient, when you try to beat the market through individual stock selection you are destined to come up short. A much smarter approach is to own a globally diversified portfolio of low cost index funds – and get on with your life.

3). Save for a rainy day. Developing a long term financial plan, with a keen eye on how much you need to save (or for retirees, how much you can spend) to reach your financial goals is the most important component to building long term wealth. Once you create this plan, you might discover you need to save a little more or spend a little less. Don’t panic. At least you know where you are at. This awareness allows you to make smarter saving and spending decisions in the future.

That is what being a Coffeehouse Investor is all about.