Great article yet again! It is so important people know this. We have had our funds in Vanguard exactly as you laid out since our early 40’s and teaching our kids to do the same (I wish we had known all of this at their age). My husband’s 401k is in a target date fund. It is mostly set it and forget it but we check in on our investments quarterly.
I think one of the most important things you wrote is this: “The biggest risk to your portfolio usually isn’t the fund you pick — it’s abandoning the plan during volatility.” It is especially important right now as the market is bouncing around. I watched people pull money out during the 2008 recession and COVID and lost a lot when the markets came back. People get anxious and panic. Just put on the blinders and keep investing. We didn’t even open the envelopes our investment reports came in during the recession. Everything is online now so it can be harder to avoid the temptation.
Thank you for the comments...yes! 100% yes! There was a time in my 20s where I tried to outplay the market when it went down or up. I could have saved my self a lot of heart ache and money, by just letting it roll!
Great article yet again! It is so important people know this. We have had our funds in Vanguard exactly as you laid out since our early 40’s and teaching our kids to do the same (I wish we had known all of this at their age). My husband’s 401k is in a target date fund. It is mostly set it and forget it but we check in on our investments quarterly.
I think one of the most important things you wrote is this: “The biggest risk to your portfolio usually isn’t the fund you pick — it’s abandoning the plan during volatility.” It is especially important right now as the market is bouncing around. I watched people pull money out during the 2008 recession and COVID and lost a lot when the markets came back. People get anxious and panic. Just put on the blinders and keep investing. We didn’t even open the envelopes our investment reports came in during the recession. Everything is online now so it can be harder to avoid the temptation.
Thank you for the comments...yes! 100% yes! There was a time in my 20s where I tried to outplay the market when it went down or up. I could have saved my self a lot of heart ache and money, by just letting it roll!