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There's no perfect way to invest. Find what works for you & ignore everyone else

  
Analysis, Education
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The first rule of investing is…that there are no rules. Seriously, NO RULES! With all apologies to Mr. Buffett, there are guidelines, suggestions and simple math, but no rules.

It doesn’t always seem that way. There is no shortage of talking heads (journalists, bloggers, analysts, financial advisors, etc.) telling you what to do with your hard-earned savings. But in the end it’s your money. You can invest it (or spend it) however you see fit.

  1. If you want to hold stocks if they hit Japan-like bubble valuation levels. You can do that.
  2. If you already moved 20% into cash in anticipation of a correction that never came. You can do that.
  3. If you are up to your eyeballs in entrepreneurial risk and want to hold other safe assets. You can do that.
  4. If your career is just getting started and you’re not ready to own stocks. You can do that.
  5. If you want to put 5% of your portfolio into a basket of cryptocurrencies. You can do that.

As Meb Faber writes: “Remember, when Mr. Market shows up at your door, you don’t have to answer….” That being said there are some simple things you can do to improve your financial life without messing with the stock market.

  1. If your employer offers a match for 401(k) contributions, get every penny you can.
  2. If choosing between two similar investment vehicles: choose the cheaper one.
  3. If someone ever says an investment can’t lose or is guaranteed. Walk the other way.
  4. If you have have a young family, buy some low cost, term life insurance.
  5. If you have high rate credit card, work to eliminate that debt ASAP.

Want to have lunch with the world's best hedge fund manager?Current Bid at $ 14000

  
  Education
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Lot_page

You and a guest will join Ray Dalio, Bridgewater Associates Founder, Chairman & Chief Investment Officer, for lunch in NYC or Connecticut.

Bridgewater manages approximately $154 billion in global investments for a wide array of institutional clients, including foreign governments and central banks, corporate and public pension funds, university endowments and charitable foundations. Approximately 1,700 people work at Bridgewater, which is based in Westport, Connecticut.

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A FAIR APPROXIMATION FOR A SUCCESS FORMULA

  
  Education
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A fair approximation for a success formula would be:

  1. Pursue multiple sources of well-being and success;
  2. Express those through activities that bring favorable returns with minimal wear-and-tear;
  3. Stay flexible and rebalance your life periodically as needs and circumstances change.

In other words, life success requires savvy asset management. It’s not about pouring yourself into the next big opportunity or going with a consensus flow. Rather, success hinges upon deeply understanding the factors that create returns and finding the right expressions and blendings of these.

Life is more than a succession of unconnected trades. At its best, life is a portfolio of investments that generate positive and meaningful returns. That can only happen, however, if we take the reins and thoughtfully manage our life’s assets.

Why We Fear Simple Money Solutions

  
  Education
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I keep coming across an interesting problem. People say they want things to be simpler — investing, life insurance, retirement planning, etc. But when a simpler (and effective) option is proposed, they reject it as too simple.

In most of the money situations I’ve come across, the best solution is almost by definition the simplest. (Note: I didn’t say the easiest.)

So why don’t we go for simple?

1) We don’t believe it will work.

We’re attracted to complexity because anything that requires a lot of something — time, details, money — should work, right? By default, if it’s simple, say only two steps instead of ten, we think we’re missing out.

2) We think simple should be easy.

It’s like the guy who goes to the doctor and says he doesn’t feel well. There must be something wrong with him that a pill could fix. But all the doctor says is, “Get more sleep, eat healthier food and exercise three times a week.” (more…)

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