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You Don't Have to be Brilliant to do Well in the Stock Market, Just Don't be Stupid
Yep, just don't shoot yourself in the foot. I make very few changes, very rarely, and seldom. Is that sentence from the Department of Redundancy Department? Laugh.
I liked it so much I passed it onto my kids (who are in their 30's).
One of the respondents was Diego Stendardo, who linked to one of his own articles. In that article he said he put his newborn son into 3 global ETF's that cover 90% of the investable market with instructions to his broker to invest every month:
40% broad developed markets ETF 30% broad emerging markets ETF 30% global real estate ETF
Question for the Board: which ETF's do you think he might have picked? I couldn't find it, but maybe I went roaring through the article and responses too fast...
developed market - MSCI EAFE index ETF, VEA emerging market - MSCI emerging market ETF, VWO global real estate - Global ex-US real estate, VNQI & US real estate, VNQ
iShares, State Street and others have equivalent ETFs as well.
Hi Max, Re: "SSIF Syndrome" - One remedy is construct a plan so complex (baskets within baskets) it becomes hard to do much damage with a single dumb move. Spreading it around in 15-25 funds may also help.
Well, a good case can be made for giving $$ to a good manager & spending more time at the beach or opera. However, I see folk talking to their broker from beach nowadays, so this may no longer hold water.
Reply to @hank: Hey, Hank. OK, sure. But my alternative to holding 15-25 funds is to keep things simple, don't try to shoot the moon, don't chase profits. With 7 or 8 funds. To hold 15-25 funds, holy jeepers. That would feel overwhelming to me. But I see what you mean.
Reply to @Sven: Thanks, Sven. These look good; also very handy now that we have monies at Vanguard (for the kids). I'm trying to construct a pretty-much-hands-off basket of taxable stuff they can set and forget. Think I'll put these 3 in (using VNQI), and then add the mid-cap blend index as well. I think it fills in some gaps for them, stuff they don't duplicate in their Roths. best, hawk
Comments
One of the respondents was Diego Stendardo, who linked to one of his own articles. In that article he said he put his newborn son into 3 global ETF's that cover 90% of the investable market with instructions to his broker to invest every month:
40% broad developed markets ETF
30% broad emerging markets ETF
30% global real estate ETF
Question for the Board: which ETF's do you think he might have picked? I couldn't find it, but maybe I went roaring through the article and responses too fast...
best, hawk
developed market - MSCI EAFE index ETF, VEA
emerging market - MSCI emerging market ETF, VWO
global real estate - Global ex-US real estate, VNQI & US real estate, VNQ
iShares, State Street and others have equivalent ETFs as well.
Hey, Hank. OK, sure. But my alternative to holding 15-25 funds is to keep things simple, don't try to shoot the moon, don't chase profits. With 7 or 8 funds. To hold 15-25 funds, holy jeepers. That would feel overwhelming to me. But I see what you mean.
Thanks, Sven. These look good; also very handy now that we have monies at Vanguard (for the kids). I'm trying to construct a pretty-much-hands-off basket of taxable stuff they can set and forget. Think I'll put these 3 in (using VNQI), and then add the mid-cap blend index as well. I think it fills in some gaps for them, stuff they don't duplicate in their Roths.
best, hawk