More on this book
Community
Kindle Notes & Highlights
Read between
July 29, 2018 - November 7, 2021
“it’s almost certain that whatever you’re going to put your money in, there will come a day when you will lose fifty percent to seventy percent.”
there will be a day of reckoning for every type of asset. So, diversify or die. But if you diversify well, you’ll win!
At least one life insurance policy belongs in your Security Bucket,
life insurance policy, described in section 5, can provide you with an income for life, tax free, while you’re still alive!
The right kind of structured note can be a great way to participate in the upside of the market without worrying about the downside
The longer you don’t need liquidity, the more the market will pay you for that.
The structured note is only as secure as the bank that issues it.
You can have your complimentary asset allocation (and full portfolio review) done for you online at www.strongholdfinancial.com
“How much am I risking and how much am I keeping secure?” That’s where the game is won or lost!
As an investor, I look for ways to get maximum rewards in a secure environment—
asset allocation is an art, not a science. The idea of security is totally subjective. Some people think nothing is safe! Others can live with a tiny bit of risk and still feel secure. So you’ve got to look at each investment on an individual basis.
you can also buy shares of a REIT index fund, which gives you a diversity of many different REITs.
five-minute online quiz (http://njaes.rutgers.edu/money/riskquiz) that can help you identify where you fit on the risk-tolerance scale.
Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves. —PETER LYNCH
first two keys of asset allocation: diversify across asset classes and diversify across markets.
make equal contributions to all of your investments on a set time schedule, either monthly or quarterly.
diversified among a basket of index funds, including US stocks, foreign stocks, and emerging-market stocks,
to be a successful investor, you need to rebalance your portfolio at regular intervals.
It takes discipline to sell something when it’s still growing and invest that money into something that’s down in price or growing more slowly, but this willpower is what makes someone a great investor.
The rules of rebalancing don’t guarantee you’re going to win every time. But rebalancing means you’re going to win more often. It increases your probabilities of success. And probabilities through time are what dominate the success or failure of your investment life.
How often should you rebalance? Most investors rebalance once or twice a year.
complexity is the enemy of execution.
we need 30% in stocks (for instance, the S&P 500 or other indexes for further diversification in this basket).
Fifteen percent in intermediate term [seven- to ten-year Treasuries] and forty percent in long-term bonds [20- to 25-year Treasuries].”
it’s about balancing risk, not the dollar amounts.
7.5% in gold and 7.5% in commodities.
Lastly, the portfolio must be rebalanced. Meaning, when one segment does well, you must sell a portion and reallocate back to the original allocation. This should be done at least annually, and, if done properly, it can actually increase the tax efficiency. This is part of the reason why I recommend having a fiduciary implement and manage this crucial, ongoing process.
The value of income insurance cannot be overstated! And when coupled with the All Seasons portfolio, you have quite a powerful combination.
variable annuities should be avoided.
advanced-life deferred annuity, which is essentially longevity insurance.”
One of the huge benefits of an FIA is that each and every year, any gains or upside are locked in,
As powerful a tool as these FIAs can be for a safe-money return, it’s their ability to simultaneously provide you a guaranteed lifetime income stream that makes make them so darn attractive.
fixed indexed annuity
If you’d like to have a guaranteed income for life, you can select that optional income rider as well. When you do this, you’ll have two accounts that compete with each other: (1) a base account that accumulates as the stock market grows and locks in its returns each year, as we described earlier; and (2) an income account where, depending upon the issuing insurance company, you’ll have a guaranteed rate of return or a combination of a guarantee and market performance. To your benefit, the income you’ll receive will be based on whichever account is larger at the time you decide you want the
...more
www.lifetimeincome.com.
an annuity is just a portion of your overall asset allocation (and just part of your Security Bucket),
of $30. And what does that mean? It means
They don’t see the compounding of costs and compounding of fees.
People out there really should understand why they’re buying stocks. It’s for the dividend yield, and it’s for the earnings growth.
The fact is that over the long term, half of the return in the stock market has come from dividends.
Choose your asset allocation in accordance with your risk tolerance and your objectives.
diversify through low-cost index funds.
Don’t do something—just stand there! No matter what! And you’ll be able to resist that temptation more easily if you had a little bit more of your assets allocated to bonds than you think you should.
you always want to be with whatever the predominant trend is. You don’t ever want to be a contrarian investor.
The whole trick in investing is: “How do I keep from losing everything?”
get out of anything that falls below the 200-day moving average.
It is not about a wealth level, it’s about being well rounded, well advised, and sticking to a plan.
Invest for the long term and only take money out when you truly need it.
people just don’t realize what the cost is, as Jack Bogle points out. For every 1% over the lifetime of investing, it’s 20% of your money you’re giving up.
asset allocation is the single most important investment decision a person can make.
