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vssrio23 posted:"Higher risk level" is a cool catch phrase until an investment in an equity-based mutual fund loses over 35% of its value within a year. Impossible, right? It's not a catchphrase. A person who is young is able to withstand major equity shocks and does not need to withdraw from mutual funds in the long term. Furthermore, there is no reason to have 15% of your savings in liquid cash, assuming that you have the expenses to be able to live for at least 6-12 months. Moving to Us based equities and fixed income at a young age when you do not need to withdraw money will lead to wasting a lot of potential gains. Please at least read the long term investment thread.
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Jun 28, 2014 23:14
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vssrio23 posted:The point behind have a cash reserve is that it will allow you a buying opportunity for equities that are trading at a steep discount immediately following a crash. Simply keeping a long position on every equity you own with no regard for the general price of the market is a sure way to lose money. The proposition that equities will always go up no matter the time or economic environment is a smug disregard for the maxim that past returns do not indicate future performance. In a thread about Wealthfront, a company with a investment philosophy that was founded on the principles of Malkiel and Bernstein, I'd recommend that you at least appear to have read their books or be able to logically argue about their claims before giving away advice. Please go back to the Stock Trading thread and avoid necroing a dead thread that has already been answered.
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Jun 29, 2014 05:07
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