A couple of items.Paul and Justin from Birinyi hung their own shingle at Bespoke Investment Group doing some blogging, investment management and a few other things. I imagine the content will be very good; best of luck with the new venture.
Andy Swan has a very interesting post about retirement. One idea is not retiring. I have touched on this from a slightly different angle in that retirement is evolving into something different than it has been in the past.
As far as investing for retirement, Andy says just buy the Dow, presumably he means the Dow Diamonds Trust (DIA). This is not that crazy of an idea. The Dow will always be a proxy of some sort for the US stock market, even if it is flawed. If you have a long time horizon, are not worried about the occasional bear market and can live with the occasional lag or beat of the S&P 500 or some other broader benchmark...well, why not?
I think there is an element of tongue in cheek to the idea but it does take you back to thinking about portfolio construction in simple terms which is not a bad thing.
5 comments:
Looking back to when I was starting to invest - I would have picked these blue chips to fund my retirement:
Pennsylvania Railroad
U S Steel
Eastern Airlines
National Distillers
RCA
OG
Not sure, other than X, which of those may have been Dow compenents but DIA did not exist in the past and I beleive it is correct to say that no Dow component went to zero while it was still in the Dow.
Geez, he sounds like invulnerable 18 year old son. I hope Andy has a heapin big long term disability insurance policy. Did it ever occur to him he might not have a choice about working during retirement?
I am trying to find a etf to invest in that represents a store of wealth other than precious metals and or oil which are too volatile for my taste. I would not mind a fund that had these two areas but not over weight, what do you all think of the DJP ETF for this purpose. also any other suggestions would be appreciated. would utility etfs fit tghe bill?
You might want to look at the long term performance of commodities before doing that.
Andy's post makes me think about somehting I've considered. He says "401ks aren't for him;" my company's 401k is always the worst performing part of my portfolio due to its limited investment choices.
Has anyone seen someone do a comparision of full 401k investing vs. putting just enough in to get the free match and investing the rest of the money in regular investment accounts? I think I might run some numbers on this.
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