If you’re in a hurry and don’t have the time to make it through this article, here’s the entire point in one sentence: Almost everyone is trained to think linearly in a way that suggests the frequency of getting investment correct is the most important individual endeavor, when really, it is the magnitude of our investments that matter.
For instance, an aspect of Benjamin Graham’s legacy that is almost never discussed is that over half of his lifetime success came from his decision to break all of his self-imposed rules about value and diversification to make a big $712,000 bet on GEICO in 1948. That changed his life—no way The Intelligent Investor becomes … Read the rest of this article!
People often meet with their retirement advisors and try to figure out what the appropriate net worth figure is necessary for someone to retire. It’s a difficult question to answer because everyone spends differently to maintain their lifestyle. In addition, adverse health-care developments can dramatically alter plans. Finally, financial advisors don’t want to tell clients in their 50s and 60s that they cannot retire anytime soon because being Dr. Toughlove might be in a client’s best interest but it is not particularly conducive to getting assets under management.
The point being, there are a lot of forces that militate against specific discussion of the appropriate retirement figure.
In spite of this, I’ll share … Read the rest of this article!