CEFs generally get little attention in Mutual Fund Observer and sites
like Bogleheads.
There are some great books available
like the The Bogleheads» Guide to Investing, that explain asset allocation (AA) in more detail.
You can read more about lazy portfolios at sites
like Bogleheads and Marketwatch.
I'd simply bring a book
like the Bogleheads Guide to Investing, or The Coffeehouse Investor, and explain the benefits of index fund investing.
That's pretty much the strategy I recommend to other doctors on my blog and I have a post coming up from one who retired at 53 by doing nothing other than invest
like a Boglehead.
We really
like the Boglehead's Lazy Portfolios, and here are our three favorites depending on what you're looking for.
Invest
like a Boglehead, and let their grassroots investment wisdom guide you down the path of long - term wealth creation and happiness, without all the worries and fuss of stock pickers and day traders.
Not exact matches
Take somebody
like Microlepsis at the
Bogleheads Forum.
And it will turn you into a devoted
Boglehead like me.
I just discussed this topic over on the
bogleheads forum... they said to decide your asset allocation first, then to choose the lowest cost funds available in your 401K to accomplish that goal, even if the only fund that will cover a particular sector of your asset allocation is more expensive (for example my international funds are all over.5 MER — but they said not to skip this category just because it was more expensive than I would
like).
When it comes to individual stock picking, a typical
Boglehead will cite the usual litany of failed firms
like Eastman Kodak, General Motors, and Wachovia to claim that individual stock picking is a futile exercise.
Somebody notify the
Bogleheads, they will
like this one, or at least Jack will.
Bogleheads sounds
like a great book... I plan on reviewing it myself once I get to the end of the library wait - list.
Retail brokerage firms (
like Schwab, Fidelity, or Vanguard) have adequate protections for investors holding securities, and if you follow the principles of this site and of
Bogleheads, you will not need managed services.
Filed Under: Book Review Tagged With:
Bogleheads, Fee Only Planners, feedmyinbox, Live
like a resident, Millionaire Next Door, The White Coat Investor
I haven't run the math on it
like in that thread on
bogleheads, but from playing with the calculators at the SS administration online, more dollars paid today don't increase my eventual payment that much.
If you would
like to know more, that
Bogleheads page I linked to above had some good Investment Policy Statement examples.
Fortunately, the
Bogleheads — a group of
like - minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group — are here to help.