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December 14, 2007 at 7:59 AM #116980December 14, 2007 at 7:59 AM #116996NewbletParticipant
Isn’t getting the best return for the least risk always the best idea regardless of age?
December 14, 2007 at 8:08 AM #116778CoronitaParticipantIsn't getting the best return for the least risk always the best idea regardless of age?
No risk ==> low returns.
Higher returns ==> more risk.
If someone tells you something about high returns with low risk, that's a red flag right there. If it weren't the case, more people would doing it.
If you are young, you should really not worry as much about taking slightly more risk. Even if you lose, you have many more years to make up for it. If you put things all too conservatively, imho, you'll have a bigger risk of being eaten alive by inflation. (Taking slightly more risk doesn't mean being completely foolish and betting the house on one fund).
I have a book to recommend you read. It's called the Four Pillars of Investment by William J Bernstein. It's for most people (including average joe me). Others more savy might have other recommendations.
December 14, 2007 at 8:08 AM #116909CoronitaParticipantIsn't getting the best return for the least risk always the best idea regardless of age?
No risk ==> low returns.
Higher returns ==> more risk.
If someone tells you something about high returns with low risk, that's a red flag right there. If it weren't the case, more people would doing it.
If you are young, you should really not worry as much about taking slightly more risk. Even if you lose, you have many more years to make up for it. If you put things all too conservatively, imho, you'll have a bigger risk of being eaten alive by inflation. (Taking slightly more risk doesn't mean being completely foolish and betting the house on one fund).
I have a book to recommend you read. It's called the Four Pillars of Investment by William J Bernstein. It's for most people (including average joe me). Others more savy might have other recommendations.
December 14, 2007 at 8:08 AM #116942CoronitaParticipantIsn't getting the best return for the least risk always the best idea regardless of age?
No risk ==> low returns.
Higher returns ==> more risk.
If someone tells you something about high returns with low risk, that's a red flag right there. If it weren't the case, more people would doing it.
If you are young, you should really not worry as much about taking slightly more risk. Even if you lose, you have many more years to make up for it. If you put things all too conservatively, imho, you'll have a bigger risk of being eaten alive by inflation. (Taking slightly more risk doesn't mean being completely foolish and betting the house on one fund).
I have a book to recommend you read. It's called the Four Pillars of Investment by William J Bernstein. It's for most people (including average joe me). Others more savy might have other recommendations.
December 14, 2007 at 8:08 AM #116985CoronitaParticipantIsn't getting the best return for the least risk always the best idea regardless of age?
No risk ==> low returns.
Higher returns ==> more risk.
If someone tells you something about high returns with low risk, that's a red flag right there. If it weren't the case, more people would doing it.
If you are young, you should really not worry as much about taking slightly more risk. Even if you lose, you have many more years to make up for it. If you put things all too conservatively, imho, you'll have a bigger risk of being eaten alive by inflation. (Taking slightly more risk doesn't mean being completely foolish and betting the house on one fund).
I have a book to recommend you read. It's called the Four Pillars of Investment by William J Bernstein. It's for most people (including average joe me). Others more savy might have other recommendations.
December 14, 2007 at 8:08 AM #117001CoronitaParticipantIsn't getting the best return for the least risk always the best idea regardless of age?
No risk ==> low returns.
Higher returns ==> more risk.
If someone tells you something about high returns with low risk, that's a red flag right there. If it weren't the case, more people would doing it.
If you are young, you should really not worry as much about taking slightly more risk. Even if you lose, you have many more years to make up for it. If you put things all too conservatively, imho, you'll have a bigger risk of being eaten alive by inflation. (Taking slightly more risk doesn't mean being completely foolish and betting the house on one fund).
I have a book to recommend you read. It's called the Four Pillars of Investment by William J Bernstein. It's for most people (including average joe me). Others more savy might have other recommendations.
December 14, 2007 at 8:24 AM #116783NewbletParticipantFour pillars eh? Might have to check that one out. I’m currently reading Crash proof and Intellegent Investor.
As far as the whole risk vs return thing. I figure that a little market intellegence should shift risk down and reward up, am I right? Or are the majority of people rich from investment because they are lucky?
December 14, 2007 at 8:24 AM #116914NewbletParticipantFour pillars eh? Might have to check that one out. I’m currently reading Crash proof and Intellegent Investor.
As far as the whole risk vs return thing. I figure that a little market intellegence should shift risk down and reward up, am I right? Or are the majority of people rich from investment because they are lucky?
December 14, 2007 at 8:24 AM #116949NewbletParticipantFour pillars eh? Might have to check that one out. I’m currently reading Crash proof and Intellegent Investor.
As far as the whole risk vs return thing. I figure that a little market intellegence should shift risk down and reward up, am I right? Or are the majority of people rich from investment because they are lucky?
December 14, 2007 at 8:24 AM #116991NewbletParticipantFour pillars eh? Might have to check that one out. I’m currently reading Crash proof and Intellegent Investor.
As far as the whole risk vs return thing. I figure that a little market intellegence should shift risk down and reward up, am I right? Or are the majority of people rich from investment because they are lucky?
December 14, 2007 at 8:24 AM #117006NewbletParticipantFour pillars eh? Might have to check that one out. I’m currently reading Crash proof and Intellegent Investor.
As far as the whole risk vs return thing. I figure that a little market intellegence should shift risk down and reward up, am I right? Or are the majority of people rich from investment because they are lucky?
December 14, 2007 at 8:30 AM #116788(former)FormerSanDieganParticipantNext, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. [EDIT – Sentence missing here] However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.
She left out one additional sentence. Is should read as follows in the place noted above …
Once you have put into the 401K to the match, and maxed out your Roth IRA, if you have additional leeway, add the additional funds to your 401K up to the maximum.December 14, 2007 at 8:30 AM #116919(former)FormerSanDieganParticipantNext, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. [EDIT – Sentence missing here] However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.
She left out one additional sentence. Is should read as follows in the place noted above …
Once you have put into the 401K to the match, and maxed out your Roth IRA, if you have additional leeway, add the additional funds to your 401K up to the maximum.December 14, 2007 at 8:30 AM #116954(former)FormerSanDieganParticipantNext, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. [EDIT – Sentence missing here] However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.
She left out one additional sentence. Is should read as follows in the place noted above …
Once you have put into the 401K to the match, and maxed out your Roth IRA, if you have additional leeway, add the additional funds to your 401K up to the maximum. -
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