The other thing to remember is that no matter what you do, many people will say that you are doing it wrong. The same portfolio might be condemned by one person as being so conservative that you might as well put your money under your mattress and condemned by another person as so risky that you might as well just burn your money in the fireplace.
When I was young, I let all of that noise keep me from investing much at all. For people whose jobs offer them a 401k option, taking the simplest fund is good enough until they figure out something else. I probably would have left much of my money in cash except that the company contributed in company stock and my dad recommended three funds.
Investing has also changed over time. When we were young, you had to pay a fee to buy or sell stock. That meant anyone trying to invest with small amounts of money was penalized compared to the big players.
I probably should have added another one: "Thou shalt never pass up a matching funds offer for your company 401k".
Good advice!
Thanks.
Of course these "commandments" shouldn't be etched in stone because the powers that be keep changing the game. Perhaps etched in paper?
The other thing to remember is that no matter what you do, many people will say that you are doing it wrong. The same portfolio might be condemned by one person as being so conservative that you might as well put your money under your mattress and condemned by another person as so risky that you might as well just burn your money in the fireplace.
When I was young, I let all of that noise keep me from investing much at all. For people whose jobs offer them a 401k option, taking the simplest fund is good enough until they figure out something else. I probably would have left much of my money in cash except that the company contributed in company stock and my dad recommended three funds.
Yes, any approach must match the person doing it.
Investing has also changed over time. When we were young, you had to pay a fee to buy or sell stock. That meant anyone trying to invest with small amounts of money was penalized compared to the big players.
I probably should have added another one: "Thou shalt never pass up a matching funds offer for your company 401k".