04-25-2003, 3:35 PM | Post #83504 |
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My favorite newspaper columnist is Jonathan Clements of the "Wall Street Journal". (I have his first WSJ column and his two prior books.) Jonathan has written his third book, "You've Lost it. Now What?". Here are excerpts:
"To amass enough for retirement, you will need to settle on a prudent investment plan, move decisively to straighten out your portfolio, keep your worst instincts at bay, and save like crazy."
"Winning may be fun, but losing really stings."
"Markets bounce back. Individual companies often die."
"If you are hanging onto an idiotic portfolio, held back by your reluctance to sell at a loss, you are making a huge mistake."
"If you chase market trends, you will always be late to the party."
"Retiring in comfort takes a ton of money. As a rule of thumb, you can generate $5,000 a year of pre-tax retire ment income for every $100,000 you have saved."
"If you want to retire in comfort, the ostrich approach won't work."
"Stock market forecasters exist to make astrologers look good."
"Take my word on it: Buy-and-hold is still your best long-run strategy."
"A stock picker's market? It is just another piece of Wall Street gibberish."
"I am a lot more enthusiastic about stocks today than I was in March 2000."
"As with bonds, real estate deserves a prominent place in your portfolio."
"Sensible investing is so darn simple and so darn boring."
"This stuff is not rocket science."
"Ignore the blather emanating from the television, the newspaper, and the other side of the garden fence."
"But the truth is, 'complexity,' 'sophistication,' and 'exclusivity' are usually excuses for Wall Street to charge fat fees."
"Investing is best when it is simplest."
"Forget Wall Street's exotic garbage. Instead, stick with stock, bond, and money market funds."
"Stop making big, stupid bonehead bets. It is time to concede that you don't know which investment will be the next big winner."
"A mix of 80% bonds and 20% stocks is no riskier than an all-bond portfolio, but its expected return is much higher."
"The greatest of investment fantasies: You can beat the stock market."
"Shooting for market beating returns involves an extremely unattractive wager."
"In the 12 months after the bottom of each of the past 12 bear markets, stocks gained an average 32.5%."
"Costs and risk can be controlled. Performance is in the hands of the gods."
"I am a huge, huge, huge fan of index funds. They are the investor's best friend and Wall Street's worst nightmare."
"Stick with foreign-stock funds, such as index funds, that don't hedge their currency exposure."
"Over 30 years, all parts of the global stock market should generate roughly comparable returns."
"If you are not careful, rebalancing can mean massive tax bills."
"I would not sign on with any adviser who wants to be compensated with commissions."
"You will discover that there are outfits such as Portfolio Solutions (Rick Ferri) in Troy, Michigan, which will manage money for as little as 0.25% a year."
"Consider purchasing a mix of inflation-indexed Treasury bonds, hight-quality corporate bonds, and high-yield junk bonds."
"If you have any sort of card debt, paying off that balance is one of the smartest investments you can make."
"Aim to keep your bond funds in your 401k, 403b, and other retirement accounts while holding your stock-index funds in your taxable account."
"The biggest investment cost of all, taxes."
"Some annuities are good and some are not so good."
"If you don't have a retirement plan at work and you are looking for other places to get tax-deferred growth for your tax-inefficient investments, Vanguard's variable annuity may be a good choice."
"Consider stock-index funds. Diversify globally. Favor low-cost bond funds, Add high-yield junk bonds. Buy real-estate investment trusts."
"Diversification is sometimes described as Wall Street's only free lunch."
"This is a great time to gauge your risk tolerance."
"As a rule, I would look to rebalance once a year."
"Investing in retirement is far more complicated than investing for retirement."
"You get just one shot at retirement, so it is critical that you settle on the right portfolio-withdrawal rate."
"Focus on the little things. Hold down taxes. Cut investment costs. Favor index funds. Rebalance regularly. Save a little more each month."
"Investing is simple. To be sure, you can make it ludicrously complicated."
"Options? Futures? Mortgage derivatives? Hedge funds? Ignore that garbage."
"After reading this book, you probably know as much about investing as the vast majority of brokers and planners."
"The challenge isn't figuring out what to do. That is fairly easy. Instead, the real challenge is getting yourself to do it."
"Settle on a single no-load, low-cost fund family and then pick exclusively from among that company's funds."
"Read some of the fine books on investing, like those by Peter Bernstein, William Bernstein, John Bogle, Charles Ellis, Burton Malkiel, an
Originally posted in thread: 26958