I cannot and I do not want to provide financial advice to anyone. This is a dog eat dog environment in relation to money and investing. In addition who cares more than you about your hard earn greenback.
All, I will tell you here. I have done it, I am doing it or I will be doing it; today, tomorrow, in the future or never.
A few of my personal rules, some times I follow these strictly, sometimes I do not follow them at all, it depends how I feel that time of the year about rules. In either situation, I have discipline we cannot beat the market averages without discipline. You need to be bold, you need to be patient and you need to be ready to move from point A to point Z of your asset allocation.
Truth: all 229,000 money managers, recommending investing in open market stocks, never beat the major market averages for a period over 10 years.
Truth: money managers or investors investing in business beat the market averages 70% of time.
Truth: 90% of speculators -all stock holders are de facto speculators- lose money over the long haul -inflation adjusted- and average returns are below the commonly accepted average returns of 7%.
Truth: unmanaged indexes outperform 97% of all money and fund managers 100% of the time over a period of ten years in any given cycle. Thus, stop paying fees and look at a pondered basket of ETFs that are quantitatively managed as "powershares" in the Russell 2000, the SP 500, small cap, med cap and large cap stocks. I just keep adding $$ to the basket and my average is above 20% year over year. This allocation is never more than my taste for risk, and I can allow myself to take. Any one trying this should be willing to ride declines of 50% for some periods in the equity markets.
My allocation in this area changes over different economic times, sometimes I have less than 10% of my total allocation in non-dividend paying stocks.
Truth: dividend paying stocks over time beat eth market averages. I like them on my tax defer accounts, they are wonderful investments. I sell the asset if the indications are of NAV continued decline. I run a screen with focus on high dividend stocks and apply a calculation of value over a normal retirement investment target period with all dividends re-invested I will get a nice surprise.
I use www.bloomberg.com calculators and news.
As a build my 2007 target investments, I will post the information in www.marketocracy.com using fund symbols, which I will post here. Although, my returns continue to be gracious, by ranking myself against the top ROI kings -mutual funds and published money managers, I find myself in money bliss. I cannot guarantee that I will continue to outperform anything, nor anyone will be successful trying to replicate what I do. You might try it if you want, but be aware of the risks involved.
This is serious stuff. I am just one person doing one person thing for two persons.
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