You don’t have to be precise when you have a large margin of safety. It reduces stress and it makes your solution more robust against adverse conditions.
Making fewer things matter helps you focus attention and ward off FOMO and sales pitches. You’ve made it when you can afford all the “mistakes.”
Why does Vanguard put people into 90% in stocks in the first 15 years in its target date funds? Is there a big difference between investing 90% in stocks and investing 100% in stocks?
Now we know the story that retail investors run for the hills whenever the stock market hits turbulence is largely a myth. Even during the serious financial crisis in 2008-2009, only 7% of the money invested in stock mutual funds were sold out of those mutual funds. However, even though most investors don’t sell, they […]
My employer informed us our 401k plan added a new index fund to the lineup. It used to have only an S&P 500 index fund. Now it added Fidelity’s Spartan Extended Market Index Fund. 100% of my money in the 401k plan is in the S&P 500 fund because it was the only index fund […]