The Financial and Personal Security Letter
The Fed has not raised the funds rate once during the economic recovery. Long interest rates are in a trough, ending a three-decade-plus secular decline in rates, which has resulted in the bull market for bonds. Anyone making projections for investment returns over the next decade had better not be basing expectations on any historical performance. But I am afraid that this is exactly what most individual investors are doing.
In this month's issue, I explain the three biggest risks for your money. To frame risk parameters, I use inference reading—what I call outcome analysis—and on-the-ground anecdotal evidence. I exert minimal effort worrying about what I am going to make on my investments. I concentrate on dividends, portfolio balance, diversification, and compound interest—in other words, I know what I am being paid up front. So where does all this leave you? Depending on your risk tolerance, I have several allocation options to help you build a well-diversified investment plan consisting of equities, fixed income, precious metals, and foreign currencies—a mix that has historically provided consistent, positive, prudent returns. And if you're not a fan of metals, I've got a plan for you, too. No matter which one you choose, you can start with two foundation holdings you can add to with impunity through the years. More >>
Each month, I provide you with an Economic Analysis supplement to the issue. This supplement provides you with a bird's eye view of the indicators that I monitor on a regular basis. The incisive, story-telling charts included in this supplement are updated every month and range from "The Leaders" to "World Currency Reserves/World Gold Reserves." There will always be great new material as well as timely reference dates, and my comments spell out the meaning of each chart for you. Download in pdf format.
July 29, 2014
For my money the best balanced fund combination is a 50/50 mix of Vanguard Wellesley and Wellington. For clients I prefer a mix of Young Research’s retirement compounder stocks and individual bonds and bond funds. The key difference from the Wellesley and Wellington mix is our stocks provide an eclectic group of international holdings and […]More »
Dick Young grew up in Shaker Heights, Ohio, graduated from Babson College in Wellesley, Massachusetts, with a B.S. in investments, began his investment career in 1964 with Clayton Securities in Boston, and founded Young Research & Publishing, Inc. in 1978 to publish Young's World Money Forecast. More »
I became financially independent and retired at age 50 in 2011. My story has been featured in USAA Magazine and on Yahoo Finance. I credit Dick as my investing mentor both on my blog here: www.caniretireyet.com/how-i-retired-early/ and in my new book "Retiring Sooner," available on Amazon.
[What I like best are] the consistent reminders of conservative investing fundamentals. As I say in my book, "I owe an enormous debt to Richard C. Young and his Intelligence Report, which was my mentor in patient, diversified, low-cost passive index investing." Thank you again Dick!
— Darrow Kirkpatrick