I think the role of luck is vastly under-appreciated. When it comes to success, people tend to attribute to effort rather than luck. But the fact of the matter is that luck presents itself everywhere, whether we are talking about a 17-year actress beating the market with day-trading or a parking lot attendant who never made more than $20k a year but built his net worth to over a million by dollar cost averaging into blue chip stocks and reinvesting dividends.
The role of luck in the former is more obvious (if we take the market-beating claim at face value). It is less so in the latter. By the book, our parking lot attendant was doing it wrong: 100% in stocks, stock picking as opposed to indexing. But it worked. What he was able to achieve is admirable, but lucky nonetheless.
I also read these other articles this week:
How to make better decisions about retirement income by Steve Vernon at CBS MoneyWatch
I like the LIFE model. Read the article and find out what LIFE stands for.
Beyond The Fiduciary Standard by Rick Ferri at RickFerri.com
Don’t believe Wall Street when they say they won’t be able to serve small investors if they must follow the fiduciary standard. Small investors aren’t being served anyway. Having everyone follow the fiduciary standard would be a good start even though it could be better.
Expectations for Fed tapering and interest rates by Joe Davis at Vanguard Blog for Advisors
Key takeaway from the short video: tapering is not tightening.
Best coupon apps for grocery shopping at Consumer Reports
I would rather not use coupons for groceries but if you must, check out the featured mobile apps.
Dividends Are Not Free Money by Michael at Financial Ramblings
Very good point. The stock price of a company not paying much dividend can grow more.
Should College Graduates Pay Back Parents’ Loans? by Luke Landes at Consumerism Commentary
In general I would say yes although there is no legal obligation.
Have a great Labor Day weekend!
[Photo credit: Flickr user Artotem]