Too often lost in the clamor for maximum returns is the proper perspective of why we save to begin with. This is a collection of resources that will help you stay focused on how to use asset allocation to serve your important life goals and how to prevent unnecessary risk from sabotaging your best-laid plans.
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Related Commentary
Risk in the Real World - Talk about portfolio growth rates for long enough and people start to glaze over. Numbers get compartmentalized, and the concept of risk gets hazy. After all, if you’re a long term investor you can afford to have have a high risk tolerance, right? Common advice is that if you hold onto your investments long enough,…
Your Ideal Route to Financial Independence May Be Off the Beaten Path - Financial independence – the concept of establishing a sustainable system where your investments can cover your expenses, making work optional – is an issue of particular interest to me, and from the popularity of the Withdrawal Rates calculator I gather that it is for many others as well. Of all the things money can buy,…
A New Tool for Matching Goals to Timeframes - One of the things I’ve always found interesting about engineering — whether it’s making a new product or creating new spreadsheets — is that it’s a continuous learning process. One new design may address an old question but raise a new one, and the search for new insights continues. Sometimes working on a tool requires new methods…
Thinking Beyond Stocks Can Fortify Your Accumulation Plan - A fellow Boglehead asked a really good question recently, and I think it’s something we’ve all considered at some point: Why shouldn’t my asset allocation be 100% stocks during the accumulation phase? After all, the typical justification for a heavy stock portfolio sounds pretty darn compelling. They historically have a higher return than bonds…
Target Practice Is A Good Way To Measure Portfolio Accuracy - I don’t think many people will be surprised to learn that I’m not a fan of using single averages to describe portfolio returns or over-simplified metrics like standard deviation to measure risk. Both of those numbers obscure so much information that they often lead to disappointing investing decisions and give backtesting a bad name. I…
How To Invest A Windfall - Every once in a while life takes the opportunity to throw you a curveball and dump some good financial fortune in your lap. Whether it’s a bonus at work, a family inheritance, or a lucky night in Vegas, an influx of cash is generally a welcome sight. But because of the rarity of these life…
The Winning Ticket To Financial Freedom Isn’t A Game Of Chance - For anyone not paying attention to the news, the Mega Millions lottery in the United States just topped a billion dollars and is quickly rising even higher. You read that right — a Billion with a B. For the meager price of a $2 ticket, some lucky person will eventually break their way onto the…
A Meeting, a Book, a Portfolio, and a Better Life - As I blindly swung my arm to swat at the tedious drone of the alarm on the night stand, it was pretty much a morning like any other. I labored out of bed, trudged my way through the early routine on autopilot, and set out on my long morning commute down highway 280 towards San…
When Aiming for a Target Consider the Accuracy of the Weapon - When discussing investing options, the single most common referenced metric has got to be the average return. Reams of books and blogs have been written on individual asset classes and composite portfolios with the highest average returns looking both backward and forward, and amateur and professional investors alike spend more time than they probably want…
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Recommended Reading
Is It Better to Buy or Rent? — It’s not strictly an investing resource, but this interactive calculator is a tremendously useful tool for navigating when it makes more financial sense to rent or buy a home.
Your Money Or Your Life — Vicki Robin and partner Joe Dominguez tackle the issue of money versus quality of life, and how by re-prioritizing your goals you can gain control not only over your money but also over your happiness.
Work Less Live More: The Way to Semi-Retirement — Bob Clyatt’s creative mix of real-life stories and insightful financial spreadsheet advice had a major positive impact on my personal relationship with work and money, and his perspectives influence me to this day.
Bogleheads Forum — Long a tremendous resource for DIY index investors, I personally appreciate the Bogleheads forum most for how the diverse community can help you with any question. If you have a goal and feel stuck, post your question and you’ll get some great advice.
How to save money for college. Or not. — Matt Becker (via JL Collins) takes a thorough and honest look at not only the best way to save for college but also when it may make better sense to approach the problem from a different direction.
