Frazz by Jef Mallett for March 04, 2016
March 03, 2016
March 05, 2016
Transcript:
Caulfield: This app says I can retire comfortably if I start saving aggressively......six years before I was born. Frazz: That's messed up. Caulfield: I kind of like that "carpe diem" has gone from a nice idea to the only realistic option.
Yep — being scared to hold on when the market drops, just like being too greedy to sell when the market is strong, is the perfect way to “buy high and sell low.” Set an allocation, pay little attention to the market, and rebalance periodically — transferring money from the strong performers to the weaker performers. It forces you to have investment discipline. Save in banks, CDs, and money markets money you’ll need in the next couple of years; put money you won’t need for five or more years in a risk-tolerance based portfolio of stocks and bonds. Over a few decades, you stand a high chance of doing OK.