Quoted from investingdad:
I began investing in mutual funds when I was 23 and set aside 15% of my salary to do this. My wife, though we hadn't met yet, was doing the same as me.
Other than rebalancing, we've never sold. Not in 2000, 2001, 2008, or any other time. We are now early 40s and contemplating an early retirement by early 50s. We save about 23% of our gross these days.
Simple, cheap, boring, stress free...and highly successful.
Great advice. Currently that's the best advice I can echo a thousand times this !!!
Don't try to guess where the market is going but rather take whatever the market gives you. I also say don't forget foreign stocks (that's half the stock market).
I'm like 50:25:25 US stocks :International stocks :Bonds
Every dog has it's day. Some day emerging market will be top, some day bonds will be top, some days international will be top some day (currently US is top). No one is king forever. You don't want to get into international after its run up so you have to always be in so you capture the run up.
You don't ever need bonds until you do. I mean in 2008 you'd wish you had bonds. So don't wait until you wish you had them, just have them.
IMO simplicity is the easiest and best way.
Timing the market is hard/impossible.
Even the experts are wrong *lots of times* Buffett lost major bank jsut like me when the last correction came down, but just like me don't panic and sell when it's doom and gloom, if you have money (bonds) you can rebalance after a correction / recession and IMO that last recession was a once or twice in a lifetime *buying opportunity* too many far too many people did just the wrong thing and sold out in the teeth of the recession.
Just get a simple asset allocation and stick wiht it.