Being wealthy doesn't mean having all the money in the world, just not having to worry about it.

An All-TIPS Retirement Savings Portfolio?

Question: I’m curious how you might evaluate the thinking of Zvi Bodie, who notes, in this link, that 100% of the money he is setting aside for retirement is held in treasury-inflation-protected securities, and that all of one’s income needs for retirement be comprised essentially of social security plus TIPS in an IRA account. The Read more »

Is 295 Stocks Enough Diversification?

Question: ACWV has only 295 holdings. How can this be a truly global, highly diversified fund? Thanks. Answer: I like the way you think. The greatest danger in equity investing is inadequate diversification, and I’d much rather someone be overdiversified than underdiversified. I’m also not going to fight to the death on this one, since Read more »

What about Dividend-Growth Investing?

Question: May I ask what your opinion is re “dividend growth investing”? The angle that attracts me is that if one could get by on the dividends alone (in addition to Social Security, pension, etc.), you would not be forced to sell assets to live on during a down market. As such that would constitute Read more »