Quotes About Strategy

If you conscientiously manage your investments for tax efficiency, your 7.5% allows you to double your investments in 9.6 years instead of 24 years! Now do you see the importance of both tax and fee efficiency?

even if the majority agree that low cost index funds are the main ingredients).

That's why asset allocation is so important. What do all the smartest people in the world say? "I'm going to be wrong." So they design their asset allocation ideally to make money in the long term even if they're wrong in the short term.

65% US Total Stock Index 35% Intermediate-Term US Bond Market Index.

By paying the tax today, you are giving Uncle Sam his money back earlier. And by doing so, you are protecting yourself and your nest egg from taxes being higher in the future. If you don't think taxes will be higher, you shouldn't

And the smartest investors know just when to enter the market—except for when they don't!

Diversification is the only free lunch.

Often, many of those who have earned millions of dollars haven't developed a plan to sustain their lifestyle without having to work at least some of the time.

les impulsa a progresar hacia un criterio más alto, les ayuda a adoptar creencias nuevas y más poderosas que les permitan progresar más allá de sus viejas limitaciones, y apoya todo eso con habilidades y estrategias específicas necesarias para el éxito a lo largo de toda la vida.

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

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

Third, they could utilize a risk-parity portfolio. Remember, this is a very different approach than just balancing the dollar amounts you have invested in assets—which is the basic diversification strategy that almost everyone else in the industry utilizes. And it's a strategy that anyone can implement.

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.

You have to learn the rules of the game, and then you have to play better than anyone else. —ALBERT EINSTEIN

It's hard not to notice that hope is the foundation of this typical approach. But insiders like Ray Dalio don't rely on hope. Hope is not a strategy when it comes to your family's well-being.

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!

Money Power Principle 1. Don't get in the game unless you know the rules!

But that's trading, not investing, and trying to time a market brings very intense and special risks.

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

He committed to setting aside 50% of what he earned, and then he took his savings and put it to work in a big way.

Some investment advisors have turned against dollar-cost averaging because, as even Burt Malkiel admits, it's not the most productive strategy for investing in the stock market when it keeps going straight up—like it's been doing in the years following the recent Great Recession.