Money For the Rest of Us
How To Invest Money - 10 Rules of Thumb for Individual Investors
Nov 1, 2023
The podcast discusses ten rules of thumb for individual investors, including avoiding institutional hand-me-downs, minding investment seasons, and tracking economic trends. It emphasizes the importance of staying close to target allocation and diversifying investments. The hosts also debunk a legend and share their investment philosophy.
29:20
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Quick takeaways
- Individual investors should avoid using institutional tools and language that encourage unnecessary risk.
- Defining a home base allocation and avoiding straying too far from it can minimize risk for individual investors.
Deep dives
Investment Rule Number 1: Stop using institutional hand-me-downs
Individual investors often inherit tools and language used by institutions, which may not be suitable for their needs. The main difference is that institutions have a longer investment time horizon, can afford to make mistakes, and have the ability to raise more funds if needed. However, individuals don't have these luxuries and should avoid using tools that encourage unnecessary risk.
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