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#1225565
Here is my investment strategy geared towards retirement:

Open a Roth IRA (personally, I choose Vanguard, mods, it is not my intent to spam on behalf of Vanguard)

Allocate 50% in Vanguard S&P 500 index fund

Allocate 20% in Vanguard Morgan Stanely International Index Fund

20% in a small cap value fund

10% in Vangard's Inflation indexed bond fund (it invests in Inflation Adjusted US Treasury Bonds).

My approach is to diversify, take advantage of dollar cost averaging (meaning, take a fixed amount of money every month and invest it according to the above allocation), hedge against credit risk (US Treasury bonds have excellent credit because the government can simply print up money to pay it's bills), inflation risk (international fund and Inflation Adjusted US treasury bonds hedge against inflation and the bonds pay interest according to the new rate of inflation, so inflation never harms the purchasing power of the interest I collect), currency risk (investing in foreign economies through the international index hedges against the US dollor and vice versa), interest rate risk (dollar cost averaging in the bond fund helps to hedge against interest rate risk as well as investing in the non bond market in general).

I think my strategy is simple, easy to understand and works. What is your investment strategy towards retirement?
#14805495
Just a few tidbits off the cuff:

1. Always invest for the long term. Day trading will only make the brokerage firm rich and you poor.

2. Choose qualitative factors over quantitative factors. Don't worry about analyzing the figures in some annual report. All of that info has already been digested into the stock price. Look for company pluses such as good management and a good product or service with a growing marketplace - that is tough to beat.

3. Look for opportunities that make sense. Don't fall for the company making some crazy product for some possible market. Go with the known which makes sense for a solid future for their product or service.

I agree a good mutual fund is a great choice for a novice investor. Don't try to overthink investing. Often the simple, obvious plan is the one that works best...and again...NEVER DAY TRADE.
#14828079
It is increasingly difficult for the average investor to generate alpha. Money moving into passive investment vehicles like ETFs and mutual funds make a lot of sense for a long-term portfolio. That said, I believe there are still great investments in public markets but it requires a contrarian eye and fundamental, value-driven investing.

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