This chapter is from the book
Boiling It Down
- Don't go down the rabbit hole of constantly buying individual stocks or day-trading. You probably don't have the time or the expertise. Stick with index funds and ETFs.
- If you must buy stocks, don't buy stocks and never sell them. If a stock is a long-term dog, sell it. The same goes for ETFs or other assets.
- You can't just forget about your stocks or any of your investments for months on end.
- Keep your costs low. Stay away from high-priced funds and watch out for big fees on investments.
- Simply investing 60 percent of your money in stocks and 40 percent in bonds is not enough diversification.
- Rebalancing your assets on a regular basis, holding bonds, and understanding your emotions will make you a better investor.
- Understand how much money you will need to retire.