I'm an investor... again
Jan. 31st, 2007 12:21 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
A few weeks ago I impulse-purchased The Little Book That Beats The Market, mostly because the foreword is by someone I trust. I read it, and it was basically my investment strategy, but he worked out a trick that makes the difficult math disappear.
According to his simulations, you can turn $15k into a million in 17 years. That’s when I retire. So I hope to invest $30k.
Wish me luck!
According to his simulations, you can turn $15k into a million in 17 years. That’s when I retire. So I hope to invest $30k.
Wish me luck!
no subject
Date: 2007-01-30 11:36 pm (UTC)Just remember: past performance is no guarantee of future results. past performance is no guarantee of future results. past performance is no guarantee of future results. past performance is no guarantee of future results. past performance is no guarantee of future results.
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Date: 2007-01-31 12:28 am (UTC)Personally, I'd rather just pull a Ronco (http://www.google.com/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&hs=Zv2&q=just+set+it%2C+and+forget+it&btnG=Search) and put a few no-load, low expense mutual funds (or indices, or etfs. Whatev) in my 401k/403b/ira/tax-avoidance plan of choice. Interestingly, this is also what Mr. Tobias suggests (http://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0156029634/sr=1-1/qid=1170203204/ref=pd_bbs_sr_1/103-9166154-0877434?ie=UTF8&s=books) for most of us.
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Date: 2007-01-31 12:52 am (UTC)The whole "Magic Formula" thing makes me nearly as nervous as the too-good-to-be-true promised returns.
In general, 10% will double your money in 7 years, and 7% will double your money in 10 years. See? 10% == 7 years double, 7% == 10 years double. Planning on a better return than that is unlikely to win you better. Indexing into the S&P will do you just fine. Tom is correct, however, that he needs about a million roonies if not more when he retires in 17 years. There are calculators that will figure out how much to save each month at what return to get whatever you think you need, depending on how long you expect to live.
I don't do value investing (too much like religion) so take that for what it's worth. Again, past performance is no guarantee of future results. past performance is no guarantee of future results. past performance is no guarantee of future results. past performance is no guarantee of future results.
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Date: 2007-01-31 06:51 pm (UTC)Pray elaborate...
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Date: 2007-01-31 07:13 pm (UTC)Personally, I'm the old traditional your-age=bond-percentage, 20% real estate, 14% international, and the rest mostly indexed funds. I confess to a passion for CEFs in states where they're available, and I note that New Jersey has 13: BNJ (from http://www.etfconnect.com/select/FindAFund.aspx) though trading at a premium, is one example, though its state tax status is a little unclear and I don't know New Jersey.
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Date: 2007-01-31 01:20 pm (UTC)This isn't my retirement strategy.
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Date: 2007-01-31 01:29 pm (UTC)no subject
Date: 2007-01-31 04:34 pm (UTC)