"Carefully watch your thoughts, for they become your words. Manage and watch your words, for they will become your actions. Consider and judge your actions, for they have become your habits. Acknowledge and watch your habits, for they shall become your values. Understand and embrace your values, for they become your destiny."
Mahatma Gandhi

In This Edition
This is Normal
Latest Podcast
Testimonial

Most of the investors who follow our work are aware of the normal range of returns, good and bad, that is likely to be part of the long term trip to whatever payoff they eventually achieve. Others get overly excited when returns are better than normal and too worried about the market when it decides to head south for an unknown time.

I usually turn to Ben Carlson when it’s time to remind readers about what’s normal.

This week he produced a couple of tables that should give investors a good idea of what the market takes away during a normal decline.

What’s the best time to retire? The answer is easy.

In “This is Normal” he reminds us that about 2/3s of the years the market suffers a higher than 10% decline and in 1/4 of the years the market has a decline of more than 20%.

Regardless what the market is doing, there is always a list of good news and bad news. What I’ve noticed is when the market is falling, the list of bad news becomes real obvious and is the reason many investors throw in the buy and hold towel. I think it’s fair to conclude that investors who expect these declines are more likely to “stay the course” for the bigger reward.

WOW!

I asked for your help and you hit it out of the park. I asked if you would send me questions about important investment decisions you are considering. So far we have received over 100 questions.

Thank you!

Latest Podcast- Gold, REITs, CDs, Glide Paths, Quilt Charts and More

1. What is the best glide path (asset allocation) for a 58 year old pre-retiree and then in retirement? This is the link for Chris Pedersen’s 2 Funds for Life glide path. 2:50

2. I don’t need all of my RMD (required minimum distribution). How should I invest the excess? Here is the link to the video on "My 12 Favorite Vanguard Funds for Retirees” and the link to all of the Fine Tuning Tables. 11:19

3. My wife has early onset demential. It’s costs $200,000 a year. How should a family invest in a situation like ours? Here is the link to the Vanguard Brokerage CDs (⁠https://investor.vanguard.com/investment-products/cds⁠) and ⁠stantheannuityman.com⁠ for MYGA rates. 17:18

4. What are your thoughts regarding precious metal investing? And if there is a place, what is the best way to do it? 22:52

5. Will the massive increase in passive investing, which has benefited the large cap growth indices, reduce the long term returns of small cap value? Here is the link to the long term returns Paul mentions. 28:50

6. How would the long term returns change if we overweight the U.S. 4 Fund Portfolio with slightly more small and large cap value? Here is the link to the Equity Asset Classes (1928-2023) 32:01

7. I’m 72 and my wife is 63. How different should our glide paths be? Here is the link to the Vanguard and Blackrock TDFs. 44:10

8. Are REITTs more like stocks or bonds? 46:41

Testimonial

"I am grateful that a friend of mine introduced me to your work, and humbly thank you for guiding me to responsibly manage an inheritance, and specifically implement The 4 Fund strategy as a major component of it. You have also inspired me to teach my children (with your book) and in sit downs with them how to invest now (they’re 16 and 19)."

Gold, REITs, CDs, Glide Paths, Quilt Charts and More

The Best 3 Charts We Recommend

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In This EditionThis is NormalLatest PodcastTestimonial

In This Edition
This is Normal
Latest Podcast
Testimonial

Managing Your Expectations in Falling Markets