walkinwood
Thinks s/he gets paid by the post
Interesting story about a bond trader turned passive investment champion
http://www.nytimes.com/2010/11/27/your-money/27money.html
http://www.nytimes.com/2010/11/27/your-money/27money.html
After all, if he he didn't know about AA after 25 years in the industry, you've got to wonder...
I like the way he quickly qualifies his Goldman Sachs career as "back when it was a good place to work"...This is not new, nor is it rocket science. But Mr. Murray spent 25 years on Wall Street without having any idea how to invest like a grown-up. So it’s no surprise that most of America still doesn’t either.
The reviews of the book on Amazon are very interesting.
I don't see a lot of sales to E-R.org or Bogleheads members.The write-up in the NY Times (Nov 27, 2010) prompted my interest. I selected a sample, little did I know that the 5 decisions in the first chapter would be the most concrete information in the "book". Spoiler ahead, your advisor will be able to accurately calculate the risk in the various asset classes of your portfolio. Diversify your assets according to your risk/reward tolerance; re-balance or re-allocate annually. I am not a financial analyst, broker, or employed in financial services. All of the useful or actionable information is readily available from any web site. Be patient, don't swing for the fences, and diversify. I so overpaid for this essay priced as a book.
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IMO - Investing in balanced funds with at reliable low cost mutual fund company is a less emotional approach to manage a strategic allocation strategy and ensure that a policy is followed. Some people have a loose investment policy based on a rough allocation (that they often abandon in bear and bull markets at the worst time) and make poor, emotionally driven decisions based on greed and fear....
After all, if he he didn't know about AA after 25 years in the industry, you've got to wonder...
True enough. But it might helpful for less interested spouses, children or friends of those here and Bogleheads...I don't see a lot of sales to E-R.org or Bogleheads members.
The surest way to turn someone against active investment management is to have them work closely with professional money managers and see how they make decisions.
I think that was exactly his point.Depends on the manager....some professional money managers are frequent traders........
Ok.
I'm the only one who thought of the lawyer joke? ""What do you call a dying banker? A start".
Sure. I'm the only evil mind here. ok, i'll crawl back in my hole.
I'm the only one who thought of the lawyer joke? ""What do you call a dying banker? A start".
The articles states some basic time-tested best practices for investors... especially individual investors. It is amazing how few follow it.
IMO - Investing in balanced funds with at reliable low cost mutual fund company is a less emotional approach to manage a strategic allocation strategy and ensure that a policy is followed. Some people have a loose investment policy based on a rough allocation (that they often abandon in bear and bull markets at the worst time) and make poor, emotionally driven decisions based on greed and fear. But I believe most small investors just wing it and have little to no allocation plan. At least, most people I talk to do not seem to have a strategic target allocation... much less rebalance.
I've often thought about investing in the balanced funds for simplicity.
Do you recommend those type funds in taxable allocations?
I personally have very little tax advantaged space.
I'm always interested in thoughts from all sides of the issues..
Steve