Investing is simpler than it looks

[araomd]

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.

 

[araomd]

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

 

[sparked1]

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

 

[Bonecollector]

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

Makes two of us man.

 

[araomd]

Believe it or not, what you choose to invest in (within reason) probably doesn't even make a difference over the long run:

https://mebfaber.com/2013/07/31/asset-allocation-strategies-2/

 

[GA 1911]

Believe it or not, what you choose to invest in (within reason) probably doesn't even make a difference over the long run:

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).

 

[chucklenut]

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

So we should ignore the advice you gave on odt

 

[chucklenut]

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)

 

[GA 1911]

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.

Diversify your savings and investments (stocks, cds, savings accounts, crypto, gold/silver, collectibles, land, etc; pick 3 or 4)

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.

 

[Realtor]

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)

Buy your home outright? Haha