Just Keep Buying

Individuals who saw the older versions of themselves allocated about 2% more of their pay (on average) to retirement than people who didn’t see such photos.62 This suggests that seeing a realistic older version of yourself may be helpful in encouraging long-term investing behavior.

If you need to save for something that will take less than three years, use cash. If you are saving for something that will take longer than three years, put your savings in bonds.

If your expected savings are higher, then you need to focus more on saving money and adding to your investments. However, if your expected investment growth is higher, then spend more time thinking about how to invest what you already have. If the numbers are close to each other, then you should spend time on both.

If you don’t have much money invested, then you should focus on increasing your savings (and investing it). However, if you already have a sizable portfolio, then you should spend more time thinking about the details of your investment plan.

Despite all the praise that I have just given to stocks, they are not for the faint of heart. In fact, you should expect to see a 50%+ price decline a couple times a century, a 30% decline once every four to five years, and a 10% price decline at least every other year. It is this highly volatile nature of stocks that makes them difficult to hold d

Fund the life you need before you risk it for the life you want.

Expected Annual Return = (1 + % Gain Needed to Recover)^(1/Number of Years to Recover) – 1 But since we know that the “% Gain Needed to Recover” is 50%, we can plug in this number and simplify this equation to: Expected Annual Return = (1.5)^(1/Number of Years to Recover) – 1 So, if you think the market recovery will take: 1 year, then your expecte

The 2x Rule works like this: Anytime I want to splurge on something, I have to take the same amount of money and invest it as well. So, if I wanted to buy a $400 pair of dress shoes, I would also have to buy $400 worth of stocks (or other income-producing assets). This makes me re-evaluate how much I really want something because if I am not willin