I don’t know about you, but most of the retirees have only one requirement for their investments:
Make some money and try not to lose any…
Come to think of it, I think many of us now have that same investing mindset.
Most investment managers — particularly, mutual fund managers who judge their performance against an arbitrary benchmark — are subject to the whims of the market. Sure, they’d like to limit losses but if they’re an emerging market find manager and the BRICs get slammed, the fund is going to get slammed.
For do-it-yourself investors who practice buy-and-hold, the theory is that by manning the hatches during poor investment periods and holding tight, returns will be better than if we attempted to buy and sell our way through the investing storm.
That may be true but the trip is really nauseating, as we ride the ups and downs of the market.
This year’s best book on retirement planning plots a different course.