Quotes About Investment

the number one fear of baby boomers was outliving their savings.

Diversification is the only free lunch.

Just" 1% here, 1% there. Doesn't sound like much, but compounded over time, it could be the difference between your money lasting your entire life or surviving on government or family assistance.

One of the key secrets if you really want to become wealthy: get in front of a trend.

In fact, some investment advisors say the only completely safe bond is one backed by the full faith and credit of the United States. And you can actually buy US bonds called Treasury inflation-protected securities, or TIPS, that rise in value to keep up with inflation through the consumer price index.

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

On the other hand, if you hold too much money in cash, your spending power is not growing.

So here's the kicker: with the state taxes we're saving every year, we are literally paying off our entire new home in six years! Did you catch that? We're paying for our entire home out of the tax savings we now get as residents of the Sunshine State instead of the Golden State. Kind of makes you think we should have done it sooner, huh? Better late than never.

Of course, sitting tight is a challenge for this generation! As a society, we're wired for instant rewards, and waiting for the assets in our Security Bucket to increase in value can initially feel like watching grass grow. And that's why we get tempted into putting too much of our money into the next bucket, Risk/Growth.

The easiest way to understand this is, it's exactly what Social Security does. With Social Security, you know, you're paying in over your lifetime while you're working, and then when you retire, you get paid back income every month for as long as you live.

the worst real estate crashes in history! And on the surface, it looks like you'd probably put this in your Risk Bucket. But here's why I think it's a safe investment: in 2008, when the real estate market just went through the floor, and the world was upside down, the prices of houses in most parts of the United States dropped 30% to 40%, max. There were a few exceptions, such as some parts of Las Vegas, Phoenix, and Miami, where the prices dropped more than 50%.

First, they could stay in cash, which means they are losing money due to inflation. Or

It is not realistic to finance a 30-year retirement with 30 years of work. You can't expect to put 10% of your income aside and then finance a retirement that's just as long.

These objections mainly being that, by purchasing an annuity, you have to give your money to an insurance company in exchange for any guarantees.

The real payoff of asset allocation comes when you figure out the right mix of how much of your money you keep safe and how much you're willing to risk to get greater rewards and have the potential to grow faster.

Tony, by having a fifty-fifty portfolio, you really have more like ninety-five percent of your risk in stocks!

The overwhelmingly most important [as you figured out] is asset allocation.

Ray is showing us that if your money is divided equally, yet your investments are not equal in their risk, you are not balanced!

When a man with money meets a man with experience, the man with the experience ends up with the money, and the man with the money ends up with the experience." Now that you've decided to become

nobody knows what tax rates are going to be in the future, and therefore you have no idea how much of your money will be left over to actually spend.

A lot of people like ETFs because they give you a tremendous amount of diversity at a low cost. In fact, many ETFs have lower fees than even comparable traditional index funds, and sometimes lower minimum investment requirements.

And the reason people get screwed is that by the time they hear that the stock market (or gold, or the real estate market, or commodities, or any other type of investment) is a great place to go, very often the bubble is just about to end. So you need to put in place a system to make sure you don't get seduced into putting too much of your money in any one market or asset class or too much in your Risk/Growth Bucket.

One of your rules for diversification is to never have anything weighted more than 30%, is that correct? DS: Yes.

The best opportunities come in times of maximum pessimism," or Warren Buffett's mantra, "Be fearful when others are greedy, and be greedy when others are fearful