Afford Anything | Make Smart Money Choices Practical Investing and the Efficient Frontier, with Joe Saul-Sehy
Jan 5, 2022
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Prioritize Contributions
- Focus on contributing more money to investments, rather than constantly tweaking your portfolio.
- Use index funds for automated diversification and "self-weeding."
Mid-Term Investments
- For 5-10 year horizons, add bonds to your portfolio for stability.
- Use balanced funds or target date funds (Vanguard is recommended) for a stock-bond mix.
Behavioral Risk
- While a stock-only portfolio might be mathematically optimal, consider bonds to manage behavioral risk.
- Market volatility can cause emotional distress, leading to poor decisions.