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.
Make Fewer Things Matter: My Epiphany From Cutting A Pineapple
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.”
Young Investor: OK to Invest 100% In Stocks?
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?
Save Aggressively, Invest Conservatively
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 […]
S&P 500 + Extended Market = Total US Stock Market
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 […]