No. of Recommendations: 18
4. Don't get cute and try to time the market.
5. Once you hit your retirement number, set aside N years of living expenses in cash or cash equivalents. The number N depends on what each person finds comfortable, I recommend 3 to 5 years. The rest can be split between an index ETF and a bond fund. At this point, 4% of your liquid assets should be able to fund your annual living expenses. Consult with a professional financial advisor if you're not sure about how to manage your nest egg.
6. Enjoy your retirement. You've earned it. Don't look at your portfolio every day or every week.
I'm kind of at this stage. Been investing MI style for more than 25 years, and I think I've done well. But it's been frustrating lately. My returns have been barely above zero cumulatively for the last three years, and in the last 12 months I've trailed the S&P index about 23% to 31%. So while it's fun to manage a portfolio and buy individual stocks, I've been asking myself why continue to bother with it. I'd be much better off in SPY.
Elan
