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Investing is simpler than it looks

Thread in 'Finance / Investing' started by araomd, Nov 11, 2019.

  1. araomd

    araomd ODT Junkie!

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    But never confuse "simple" with "easy." They are NOT the same.
    It is "simple" to lose weight with diet and exercise. But it is NOT "easy."


    1. Save money. (Spend less than you earn)
    2. Put that money into a diverse basket of low fee investments. There's a lot a strategies, but most are equivalent on a risk adjusted basis.
    3. Don't look at the value too often. It's clear that investors who do that do worse.
    4. Rebalance once a year.

    That is really all there is to it. Seriously. Anyone who tells you different has something to sell you.
     
  2. araomd

    araomd ODT Junkie!

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    And stop getting financial advice from ODT and go to Bogleheads or another evidence based investing forum!
     
  3. sparked1

    sparked1 The Hen that laid the Golden Legos Supporter

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    Wish I had succumbed to this simple truth sooner than I did, but at least I did.
     
    araomd likes this.
  4. Bonecollector

    Bonecollector Warheads on Foreheads Supporter

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    Makes two of us man.
     
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  5. araomd

    araomd ODT Junkie!

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    chucklenut likes this.
  6. GA 1911

    GA 1911 Frontiersman Supporter

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    I may disagree with your statement and got bombarded with ads and pop up's when clicking the link. I ran away.

    I say keep your asset allocation more conservative as you get older. I say always keep your stock ownership with a simple fund (no confusing X3 bull, X3 bear, or overweight a sector [big caps, did-caps, small caps]. Keep it simple.

    I say income average into low-fee stock index funds (I use Vanguard). I started 100% in stocks when younger then started with a 10% in low cost bond funds (Vanguard). I am now at 65% stocks and 35% bonds. Do not think buying options is a smart move unless you live on Wall Street (buying puts and calls).

    Dividends are great. They are always taxed at a lower rate no matter what tax bracket you are in.

    I was an Independent Registered Adviser for years (now retired).
     
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  7. chucklenut

    chucklenut The Hen that laid the Golden Legos

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    So we should ignore the advice you gave on odt :)
     
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  8. chucklenut

    chucklenut The Hen that laid the Golden Legos

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    Its pretty easy

    -Save 10% or more of earnings and dont touch
    -Live below means
    -Buy your own home if you can
    -Diversify your savings and investments (stocks, cds, savings accounts, crypto, gold/silver, collectibles, land, etc; pick 3 or 4)
     
  9. GA 1911

    GA 1911 Frontiersman Supporter

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    All three big indexes posted an all time high today. The DOW went above 28,000 for the fist time today. The market is thinking that next year's earning will be solid.

    We have the only economy that is working well. I am still investing money. It's called TINA (there is no alternative). I am older and will be required to take retirement income some day.

    I like stocks, bonds, and bank deposits (checking, CD's, savings accounts--all insured). These have the ability of quick liquidity. You can sell a stock or bond in one second. You can write a check or go to a bank in ~10 or more minutes.

    I would never do crypto currency. It is a fad, IMO. No one backs this stuff.

    I own some gold and silver. It's more of a hobby. It's a collectible like a nickel 4-screw S&W.
    S210a.JPG
     
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  10. HUNTING

    HUNTING ODT Supporter

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    Buy your home outright? Haha