The Wall Street bullies have a vested interest in keeping the investing public trading. They make money on every trade whether you make money or not. You cannot make up for a lack of saving by speculating. It is far too dangerous for you and your families’ financial future.
Needed: More Investing, Less Gambling
John Bogle said, “the wisdom of long-term investing has been crowded out by short-term speculation.” It’s more than just market timing and flash trading. Americans are speculating that Social Security will be fixed, and corporations are speculating that they will earn 8% on their pension funds.
Some additional risk may be necessary to help baby boomer clients generate the retirement income they need, but it’s important not to go to extremes. “The market doesn’t care whether [your client needs] extra income or not,” he noted. Taking excessive risk is “not a Bogle move. I’m a middle-of-the-road, boring–I’ll admit it, boring–kind of guy.”
Many investors are far too impatient to be successful investors. Remember to succeed in reaching your long term financial goals you need a disciplined savings strategy and a prudent investment strategy. Mr. Bogle’s advice brings something the Wall Street bullies lack and that is “Wisdom”.
Many of us are relying on Social Security as a safety cushion, a cushion which may or may not be there when we need it. Prepare for the worst.
Follow the three simple rules of investing:
Own Equities….Globally Diversify….Rebalance