Quotes About Investment

We all know that asset allocation is the most important part of our success

The amount that you contribute to the annuity, the length of time before you decide to access your income stream, and your age at the time your income begins are the primary factors that will ultimately contribute to the amount of income you'll receive.

Then you need long-term government bonds. Fifteen percent in intermediate term [seven- to ten-year Treasuries] and forty percent in long-term bonds [20- to 25-year Treasuries].

Asset allocation, 2. Diversification, 3. Tax efficiency.

The other type of annuity is called a deferred annuity. This simply means you give the insurance company money either in one lump sum or over a period of years, and instead of receiving

an immediate income, your returns are reinvested in a tax-deferred environment so that when you're ready you can, at will, turn on the income stream you want for the rest of your life. You can literally have a schedule for what your income will be when you're 40, 50, 60—for every year of your life.

So in my total portfolio, including both my personal and retirement accounts, about 60% of my assets are in stocks, mostly in Vanguard's stock index funds.

20% Wilshire 5000 Total Mkt TR USD 20% FTSE NAREIT All REITs TR 20% MSCI ACWI Ex USA GR USD 15% Barclays US Long Credit TR USD 15% Barclays US Treasury US TIPS TR USD 10% MSCI EM PR USD

Just like dollar-cost averaging, the discipline once again makes you invest in underperforming assets when their prices are low, so that you own lots of them when their prices go up.

You don't want to hesitate to get in the market trying to have perfect timing; instead, use dollar-cost averaging and know that volatility can be your friend

Asset allocation is everything!

Expense Ratio. This expense is the main "price tag"—the number they want us focused on.

Remember, volatility can be your friend with dollar-cost averaging, and it can also allow for another technique that will keep you on track, "rebalancing

You want to know the banker's secret? Your interest payments will tack on an additional 100% or more to your loan value.

because it's really, really hard. If this was easy, if there was one formula, one way to do it, we'd all be zillionaires. One principle for sure would be get out of anything that falls below the 200-day moving average.

His best single rant: "maximum diversification, minimal cost, and maximum tax efficiency, low turnover [trading], and low turnover cost, and no sales loads." How

But you have to take some of those assets off the table to reduce your exposure to risk and make certain that you keep some of the gains or profits you've made.

So we know the four potential seasons, but which type of investment will perform well in each of these environments?" Ray responded by categorizing them into each season. Below is a chart that makes it easy to break down visually.

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.

If you lose 50%, it takes 100% to get back to where you started—and that takes something you can never get back: time.

Note that past results do not guarantee future performance. Instead, I am providing you the historical data here to discuss and illustrate the underlying principles.

There are hundreds of ways you can retool your skill set. You can do it by going after a college education, a trade education, or self-education. You can earn $100,000 to millions a year, and not by just going and spending a boatload of money on a four-year college degree

Surprise, the returns reported by mutual funds aren't actually earned by investors.

And finally, we learned that wealth without risk is a possibility. Sure, there is risk in everything, but we learned that certain structures will allow us to participate when the market goes up and not lose when it falls!