Originally Posted by RetireeRobert
Maybe not, but that doesn't really matter to my question at hand. Are those two things mentioned NOT the two biggest mistakes people make? If so, what are the two biggest mistakes?
Brennan is saying that "assuming somebody else will take care of your financial future" is a mistake. I agree. But his solution is that the stock market will take care of you. Isn't that the same mistake with just a different "savior?"
He uses the example of US stock returns. But he doesn't mention that US returns are atypical. There are plenty of other markets that have had poorer long-term returns.
I like to use the example of Japan -- the second largest economy in the world. Japan has had several long periods with poor returns. In fact, investing in Japan (via my 401(k)) in the 80's taught me an important lesson: I have no control over market returns. If I want to ensure success, I need to invest in myself.
So, I quit my job, started a company, sold the company, and retired happily. Personally, I think it was a better way to ensure my financial future than a faith in the market. But then, I'm not selling mutual funds.