[This is part 2 of a series on investing. Here was part one.]
I read a number of books on money and investing, each presenting what the author believed to be the BEST way to invest your money. But none of them were able to back up their claims with as much research as The Gone Fishin’ Portfolio.
The author, Alexander Green, first walks readers though the basics of money, which should be review if you’ve been a Foundry reader for a while:
- the magical compounding effects of saving a lot of money early on
- why not to “outsmart” or “time” the market when investing
- why to not trust your investments to a “professional.”
With that out of the way, he gets to the interesting stuff: an investment plan that is based off nobel-prize-winning research on the importance of asset allocation, keeping fees/taxes low, and staying the course (no matter what the latest “news” is from Wall Street).
The author even makes it dead-simple by giving you the actual Vanguard funds that represent each investment. So I went to shift my investments around in Vanguard to match the advice from the book. Uh oh! Since the book was written, one of the funds was closed to new investors. So there goes that portfolio.
In the next post, I’ll explain how I modified the advice in the book to get around this little roadblock, and to make the portfolio even easier to manage.