Masters in Business At the Money: The Right And Wrong Way to Invest
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Jul 31, 2024 
Dave Nadig, the Financial Futurist for ETF Trends and ETF Database, delves into the complexities of investing. He simplifies the process with a focus on low-cost diversification and the power of indexed ETFs. Nadig discusses the importance of aligning investments with personal goals and the role of risk management, emphasizing that processes matter more than outcomes. He also highlights the relevance of target date funds and the necessity of commitment in investment choices, reminding us that luck plays a part in financial success.
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Investing Is Mathematically Solved
- Investing is a solved problem mathematically with known methods to balance risk and return.
- The real challenge is knowing when and how to implement these strategies emotionally and practically.
Use Target Date Funds
- Answer key personal questions like investment time horizon and risk tolerance before choosing investments.
- Use target date funds for a simple, mostly hands-off portfolio aligned with your goals.
Low-Cost ETFs Capture Returns
- Build a diversified portfolio of low-cost indexed ETFs and rebalance about once a year.
- This strategy captures about 90% of the available market returns with minimal risk.