! Investing to Avoid the Consequences of Being Wrong
William Bernstein is a neurologist, co-founder of the investment firm Efficient Frontier Advisors and the author of several books.


Discussion

Jerry Mc from Texas posted about 1 year ago:

I am 81,so I guess my time horizon is about 8 years. With our pensions and our Social Security we can meet our needs, so I'm more that 90% equities and cash. I would love to be 60% bonds but with today's rates, bonds just don't make sense to me. I suffered a lot of pain in 2008, but hung in there, stayed with the program, and have done well. I stay conservative, I'm not looking for a big score. If we have another 2008, I will hate it, but it will not particularly affect our lifestyle. It might affect what the kids inherit.


George Sturgis from MS posted about 1 year ago:

As a retired 84 yr old, I have had a successful professional and investing
experience, each for over 55 yrs. The interview with Dr. Bernstein and particularly the ending recording, summarizes to a "T", the basis of my financial career! I wish my children and grandkids would heed his advice!
Save as much as you can, invest diversely 100% in stocks and avoid all bonds.


George Purvis from PA posted about 1 year ago:

I am retired and just turned 74, and have moved from a 60/40 to a 70/30 split of stocks/bonds over the last few years due to the poorer return on bonds.
Bernstein's advice and wisdom focuses on doing the right things, which I have tried to learn to do over 50 years of investing, but it is not easy. The temptation to move to more stocks is always hanging out there, although I do not need the risk or the return to keep my present lifestyle. I have a number of friends my age who have moved to 100% stocks over the last few years, as they need the return to keep their present standard of living. While this certainly sounds like a good strategy, I have to constantly fight to keep myself from doing what may be a very big mistake.


David Levine from NC posted about 1 year ago:

I have been retired for 18 years and when I retired I changed my portfolio allocation to 35/65 stock/bonds. I rebalance whenever the allocation approaches 45/55. When I turned 75 I stopped rebalancing as my bond portfolio was enough to live on and kept me from panicking in 2008.
While my friends rush to pluck those nickels in front of steamrollers and rush from guru to guru I am content to live my middle class life and enjoy my family.
I have bought and given to friends and family at least a dozen copies of The Four Pillars of Investing. That along with A Random Walk Down Wall Street are my two favorite investing books.
My only advice besides reading the above books, is to never forget risk and reward are joined at the hip you can not separate them no matter what some expert tells you. One other thing know your fees/expenses; I keep my mine under 0.4%.


J Yockers from OR posted about 1 year ago:

Funny thing about life and investing. Our ancestors ran like hell in the opposite direction when they saw those black and yellow stripes. Now most of us have become color blind as we sit transfixed in front of the TV, or internet, watching wall street pinstripes lead us down the path to riches. At least our ancestors knew what danger looked like!


Gregory Carr from NC posted about 1 year ago:

It is ironic that the Bill Bernstein interview took place at the Morningstar conference because it was Bernstein who taught me that all that star-chasing and 'analyst-pick' chasing that Morningstar promotes is actually hazardous to your wealth. I first learned about Dr. Bernstein and "The Four Pillars of Investing" from an article by William Reichenstein in the AAII Journal(circa 2006)and it continues to be the most valuable tip, by far, that I have ever received from AAII. In fact,"The Four Pillars" turned out to be way more valuable than the CFP coursework that I took. I would also recommend books by John Bogle, Rick Ferri, Larry Swedroe, and The Bogleheads for reinforcement. Also, use Vanguard's Portfolio Watch tool to help you manage and stay focused on the important things (asset allocation, investment expense, etc.) And, be sure to tune out all the counter-productive noise that you might be getting from CNBC, Fox, the Wall Street Journal and all those insidious investment newsletters.


Donald Polsky from NE posted about 1 year ago:

I bought some bonds at the right time when they were paying 5 to 6% from the right companies (GE etc., about 5 companies) through my broker, due in 5 years. Guess what? When interest rates dropped the companies redeemed my bonds short of the period. How do you win?


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