The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: investments for the non-financially literate Date:  4/19/2013  12:23 PM
Author:  akck Number:  72077 of 88536

I suggest reading this:

It's a short read, giving a easy to understand explanation about investing. I believe one of the authors was an investment banker who had cancer and wanted to provide a simple understanding of investments.

I've read it and it does a good job as it was a refresher for what I learned in school. It gives asset allocations so they'll be able to follow one with very little tweaking. Oh, they recommend index funds or ETFs.

My only reservation today, is the fixed income portion of your asset allocation. With interest rates so low for such a long time, I can't bring myself to invest in any FI fund. Instead, I'm substituting indexed dividend funds on the assumption they are established companies that while they may not gain much in value, they won't lose much value either. You're looking for the 3-5% dividend stream, which matches or even exceeds FI funds.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us