Retirement accounts

Jeffreauxdawg

All-American
Dec 15, 2017
8,871
7,935
113
It's not about whether it's in a checking account or an investment account. It's about whether it's in an asset that is earning returns or not. If you think that you can market time or stock pick, then keeping dry powder makes sense. The vast majority of people cannot market time or stock pick and outperform the S&P.

This I agree with. I see what you are getting at now. I think there are 2 kinds of people when it comes to investments:

1.Those who are willing to learn and understand their investments and can blaze their own trail.
2. Everyone else that really needs an advisor.

I feel you and I fit in to the former.

Back to the OP, one of the best ways to go from category 2 to category 1 is to put a little bit of real money in an account. Nothing forces you to read up like losing or making money.

I personally have 2 philosophies.
1. My serious money is long S&P 500 at super low rates. Simply put, I own fractional shares of 508 of the best companies in the world. Currently my biggest position by owning a 500 index fund, is about 5% Microsoft... very diversified across all sectors. These are global companies and offer international exposure, but are protected by good old USA. Buffet is not trying to trick anyone when he recommends the strategy, cause very few can pick em like buffet so just buy the best.
2-I trade what I know. I have a sector that I really have done a deep dive on and I look for value. Volatility is my friend. I know a dozen or so stocks and ETFs like the back of my hand and I win a lot more than I lose... In fact I never lose, I just hold until I win.

Anyone starting new should read The Intelligent Investor by Benjamin Graham and one of Bogle's books. These are the Godfathers and after those two, you can go your own way.

But keep your serious money with an advisor until you really know what are doing.
 

paindonthurt_

All-Conference
Jun 27, 2009
9,528
2,046
113
Maybe this should be stated another way.
You need 6 months of expenses that is pretty safe and liquid.
I can’t see a good argument against that considering the current situation many people find themselves in.