Monthly Older Posts: March 2018

Should you overweight to own more small company stocks?

No, you should not overweight your portfolio with Smaller Company Stocks. Just maintain a proper, healthy weight. In Nest Egg Care, I recommend that you own smaller company stocks in proportion to their contribution to the total stock market. That means I like a

We Nest Eggers keep 98% of what the market gives all investors.

It’s a key part of the Nest Egger WayNest Eggers invest to be at least in the top seven percent of all investors. We invest to simply and efficiently keep 98% of what the market in aggregate gives all investors. We don’t try

I shudder at the institutional default of 60% stocks and 40% bonds.

A prior post discussed the insurance value of bonds. When stocks tank, bond returns are always better and almost always MUCH BETTER – as much as 63 percentage points better in a year. Since we retirees are selling securities each year for our spending, we

The luck of the draw: building our nest egg and now spending it.

The purpose of this post is to describe how fate – the sequence of market returns we have faced and will face – affects our nest egg and spending in retirement.


The luck of the draw – random chance – had a big effect

“Why do I own bonds? The rate looks so low.”

My friend Betty asked that question and it’s a good one. The basic answer is that we own bonds as insurance to protect us from the DEVASTATION that BAD VARIABILITY of stocks returns would have on our portfolio. The returns from bonds are always greater

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