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Comment by
Robert Kirchner (robert-kirchner) on
Review of "Lifecycle Investing" ·
2020-12-08T20:36:55.729Z ·
LW ·
GW
Comment by
Robert Kirchner (robert-kirchner) on
Review of "Lifecycle Investing" ·
2020-12-08T20:36:03.795Z ·
LW ·
GW
Young investors who shouldn’t do this. (from the book)
- You have a student loan. - pg 9
- You have credit card debt. – pg 119
- You have less than $4,000 to invest – pg 121
- Your employer matches contributions to a 401k plan. – pg 121 (Invest to the match before leveraging.)
- Your income is correlated with the market. - pg 121
- You need the money to pay for your kids’ college education. – pg 121
- Your risk aversion is average or higher. – pg 121
Other contraindications
- You don’t know a great deal about finance.
- You have Payday loans etc..
- You are not willing to constantly monitor the account.
Could there possibly be as much as 1% of the population for which this is an appropriate asset allocation?