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      11-27-2019, 12:51 PM   #17
2000cs
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49 and its the whole thing, so you want to be careful.

I made that mistake when I was 51 and freshly divorced. Had about $50k in an old IRA, and the same amount in a brokerage account. Was too busy with the divorce and new job etc to invest wisely, but not too busy to be stupid. In the IRA I let them talk me into a managed fund, even though I know managed funds rarely beat the market. In the other account I bought an ETF (Vanguard). 9 years later the IRA was worth $68k and had well underperformed the market. The ETF had more than doubled. I took the IRA back and followed the investing advice I offered above, but I also re-thought that risk statement. Over the long term stocks outperform bonds and most other investments. Why play safe when time is on my side? And, I changed the horizon to end-of-life (and beyond because the investments don’t have to be sold then) instead of a target retirement date, because I’m not liquidating investments on the day I retire.


There is a good investing parable in the Bible about a master who gives his servants equal sums and departs for a time. One buries the money, preserving it but not getting appreciation. He gets whipped. One speculates and loses it, he also gets whipped. The third invests and returns nicely and is rewarded. That’s some investment advice for the ages there!
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