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Subject:  Re: On second thought, 2828 - Small Cap Issue Date:  1/27/2013  6:04 PM
Author:  JLC Number:  668559 of 876088

Thoughts? Trey

I think I'm ready to do a little more work, take a little more rick, and shoot for slightly better returns.

Here are some thoughts more to do with risk and return rather than stocks.

--nobody knows their true risk tolerance until they live through it. Everyone sees 30% CAGR with a 50% GSD and thinks they can handle it. Until they hit that year of 20% down followed by another year of 20% down, and they lost all their gains from the previous 5 years. Remember talk of the "lost decade" from the S&P500?

--have a timeline cushion running into retirement. Have 5 years of living expenses in CDs/fixed income when you start getting close or the idea of retirement seems tempting. The last thing you want to do is plan to retire next month only to have the market crash tomorrow and resetting your date 2 more years into the future.

--while chicks may dig the long ball, you can get into the Hall of Fame buy hitting a bunch of singles and doubles. You also don't have to be great to get into the HOF, just good for a long period of time.

--disability insurance, do you have enough to cover living expenses and then some. That's probably the biggest risk you face everyday.

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