Three Simple Rules of Investing

A nice summary I thought. Looking back over the years I couldn’t help but think how much better ones finances and life would look just by sticking with such a simple approach right from the start. I like and invest in index ETFs but I’m not a pure index investor. I also like most of the older LICs and consider them index proxies with more of a focus on dividends which appeals to me. The important criteria being broad diversification, low turnover, long term focus and low fees.

Book Review: Three Simple Rules of Investing | Retirement Researcher

 

I've narrowed it down to one simple rule:

Buy low, sell high.

 

He he. Did that in my younger days, well at least tried. Now it’s simply leave it alone and watch the income grow. And by Christ has it grown.

 

Looks like they have a website and another book

3 Simple Rules of Investing

 

It is going to take me a lifetime to undo all of the complexities I have built into our property and share portfolios over the last 30 years.

Maybe I will just pass it all over to my kids/grandkids to sort out when I pass on?

 

Hey @Nodrog, it looks like you are pretty familiar with the set and "forget" approach and yes I agree, index funds have proven to beat the buy low and sell high approach (good luck in getting it right and what`s about the time you need to spend on it?).
Based on your experience, let`s say a VAS or ARG, how long you need to hold minimum to see a good result? Let`s say you don`t care about where the market is and just buy it (worst case scenario buy at the top).

 

Know the feeling. Previously we had over a dozen properties, a pile of associated loans / LOCs / Accounts, 40 plus shares / listed funds, one hybrid trust and two disc trusts, SMSF, four associated Companies, assets in separate personal names.

But I’m almost there with simplification of the above. Only remaining task (due to CGT mananagement) is to wind down the Family Trust next F/Y after the remainder of ARG is out of it and in own joint names.

END RESULT:
1. PPOR, Offset A/C Bal = P&I Loan (Emergency Fund if needed but unlikely)
2. 2 listed funds in Joint Personal names
3. 5 listed funds in SMSF
4. Cash and Term Deposits
5. DEBT FREE

In fact it’s so simple now I’ve gotten rid of our Reckon accounting software as there’s bugger all to keep track of except occasional top up purchases of our listed funds where a basic spreadsheet suffices. Even with dividends / distributions (single ETF statements) there’s so little paperwork it’s not worth recording, simply email the docs to accountant. And everything is held in electronic format. Love it.

 

Gees, I keep on fixing these simple errors!!

 

Lifetime! Seriously.

 

Oh have you done the wrong thing according to an article in one of the newspapers today. I haven't got the link and can't find it but it's by someone called Darryl.

Gist if I recall correctly is investors are taking too much of a risk by being mostly in shares.

Seems I, and others, are taking a massive % risk. I'm comfortable with that. The article did nothing but confirm what I already knew and what I've been told previously by the FP I occasionally consult - who does it as part of the Statement of Financial Advice and understands I take no notice of such frippery.

Yup, it's a miserable day outside so I'm wasting some time before out to a recital later this arvo.

 

Yes as it sounds so simple and undeniably very effective ,but I would also add ""NEVER SELL"" marry the right person ,and stay away from the constant information from drama queens -half wit kings and throw the television social media apps and the problems from being too connected out the window..

When the book coming out Datto ??as you know subconscious ways of sweet-talking readers ...

 

Forget the book. Straight to the screen. Rated R (certain body parts pixelated), so cover the kids eyes as necessary. I got to tell it as it is.

 

Rawhide Investments maybe?--sorry Nodrog for taking your post away from your post..

 

I take the opposite view. That is, taking too much risk by NOT being mostly in shares. Eg Buffet quote I posted the other day:

Same here. Blowing a gale outside and very hot. Inside with air con on,

 

No problem, I do it all the time. My specialty.

 

Classic! Haven’t heard that in say 20 years!

 

You can make some pretty whacked decisions if you sell while high.

 

Its only when you wake up a few hours later and you have punched the buy button with the wrong asx listed code that the fun starts..

 

Nice post!

I've always thought it was

1) Earn more than you spend
2) Invest the difference
3) Be patient