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The Latest from the Late Bloomer Millionaires
The Stock and Bond Markets are up again in the third quarter of 2016. Read how my portfolio has returned 6.7% after nine months. It’s really not complicated because my portfolio is straightforward. It’s constructed to gain when the core asset classes increase and loses value when the market goes down.
Losing is an important part of investing process, if not the most important part. The majority of people don’t understand it because they sell when their investment declines. Never sell, unless it is part of your plan, not because of bear market conditions. Have a plan and stick with it during ups and downs.
I reviewed another investment book. I tell why self-published authors connect better with investing beginners than most of the traditionally published personal finance books found in bookstores. The author follows the sage advice of portfolio construction of Jack Bogle and the investment company he founded in 1974, Vanguard Group. I highly recommend this book. It’s an easy read and gets right to the point.Learn More
Many financial planning professionals are trying to scare people into “doing something” with your bonds. Ignore the warnings from the pundits on the financial news mania that you should now buy gold or precious metals. Even my favorite radio political pundit, former Senator Tom Harkin, warns people to buy gold. With all due respect, the former good Senator doesn’t know what he is talking about by telling people in his commercials to put all of their money in gold, because he has been predicting a stock market crash for over a year. That is despicable advice and he should stick to what he does best, discuss progressive ideas.
Be mindful that these articles and the pundits have an agenda. The articles are written by authors who usually work for a firm that happens to sell “what you need” and the reporters or radio hosts want views or website clicks. Scare tactics work every time, but not to readers here. Have a balanced plan with stocks and bonds approximately equal to your age. The post discusses in more detail why I have half of my portfolio in one bond fund, Vanguard’s Total Bond Market Index. I will NEVER buy gold!