As the other thread turned into gibbering idiocy, I thought I would pose a serious question. Since we are in a world of evry low yields on low volatility/"safe" investments, what is the best course of action for a cnservative, highly risk averse investor? Sit tight and maybe eat into principal? Reach into a small amount of riskier assets to juice returns (and if so what)? Something else?
"Gibbering idiocy"?!? As that thread ran its course, I couldn't help wondering whether posters like that are the primary customers for "The Military Guide". I got a lot of practice out of that.
I think that conservative, risk-averse investor ER wannabes have two choices:
1. Keep working & saving.
2. Become less risk-averse.
Luckily if they're still conservative & risk-averse, working longer won't seem so bad to them. And if working does seem bad to them, they'll quickly decide to educate themselves out of being so risk-averse.
Either that or they'll hope to accumulate a portfolio of Treasuries as big as Groucho Marx's.
It reminds me of that co-worker we've all had, the one who seems to keep taking our advice and never doing anything with it:
Us: "I'm going to ER."
Co-Worker: "Gee, I wish I could afford to do that."
Us: "Well, maybe you could sign up for the company 401(k), read this handy ER book, track your expenses, and run FIRECalc."
CW: "OK, I'm on it!"
(Six months pass.)
Us: "I'm going to ER."
Co-Worker: "Gee, I wish I could afford to do that."
Us: "So, did you sign up for the 401(k), read that book, track your expenses, and run FIRECalc?"
CW: "OK, I'm on it!"
... and so it goes...
Anyone happen to hear whether H0cu$ found valuations in 2008-09 attractive enough to invest, or is he still 100% cash waiting for the blue-light special to be broadcast over the announcing system?