10 tricks to help you beat most investors

What if the best investing advice is actually the simplest? That's the bet being made by a group of rabid do-it-yourself investors called the Bogleheads.

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VIDEO ON MSN MONEY

44Comments
Nov 16, 2013 11:56AM
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Interesting.   I'm going to check out the boglehead site.    Pretty much all the things mentioned I've been doing most of my life.   All good advice.
Dec 3, 2013 11:24PM
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Markets rise, markets fall.   Commodities rise, commodities fall.   Long term dollar cost averaging is the ticket for most of us average Joe's.    401ks provide the best opportunity for most. 

There are Dividend Reinvestment Plans (DRIP's) offered by lots of companies that you can send a monthly check to, and mutual funds to do the same that charge very little.    You don't have to have a small fortune to get started and can send as little as $25 a month to them by automatic payment.

Anything is better than nothing.   More is better.  


Skip the cup of coffee from the 7-11 in the morning and that's a $50 dollar a month head start.

Skip the paper and you're up to $100 per month.   Skip the donut and you just put $1500 in your IRA.

Imagine if you skipped a couple of other things. Everybody can save. Some a little, some a lot.  Some make excuses.

Nov 16, 2013 10:46AM
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Most is pretty good advice...Most noted.

Invest and start saving as early as possible...

Diversify as much as possible in most Sectors...

Prefer outright stocks, for growth and dividends; That changes over time.

I find it easier to mirror good funds over time, with at least top ten positions.

Never be afraid to take some cash to the table on high fliers...Greed can hold you back sometimes.

That fits into rebalancing and re-allocations, I prefer what makes money; Not always the crowd.

And finally yes, get as much as possible into tax deferred or non-taxed accounts. IRA & ROTHs.

Nov 17, 2013 6:13PM
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Never try to time the market.  Good advice.


Anyway else see last week's MSN article about how you can time the market?

Dec 4, 2013 1:08AM
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10. Minimize taxes

 

You guys missed something. While there are limitations, if you're in the lowest two tax brackets, you don't have to pay Federal taxes on either qualifed dividends or capital gains. However, this is only true if you have a taxable account. Any withdrawals from an standard IRA or 401K means paying income tax.

 

I don't think MSN will let me post the link.  The Boglehead Wiki actually has ttables showing how it works.

Dec 4, 2013 11:47AM
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Step 1.


Stop trying to "BEAT MOST INVESTORS"!!!!


Step 2.


BE AN INVESTOR......not a trader.


Step 3.


Do your own research and INVEST in companies you know and believe in.


Step 4.


Stop chasing hot stocks and bailing on cold stocks. Believe in your decisions. Bailing out is OK but it should not be a knee-jerk decision.

Nov 15, 2013 8:31PM
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I agree with the buy and hold method of investing and the index funds are okay if you don't know anything about investing...... better might be growth and income no-load funds....just remember no timing and long term.
Dec 4, 2013 2:11AM
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Hi Mr jack bogle god bless you for the good advices and sharing your life long experiencewith us.If you please suggest our family how to start investing about 10000 dollars which we saved by working hard and scared to lose it.If we can invest and increase our income we would like to get involve and help local community.your cooperation and consideration will be greatly appreciated.

Dec 4, 2013 9:24AM
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Pretty good advice.  A lot of it can be simplified even farther.  Buy and hold index funds that cover the entire market.  Period.  VTIs or SPDRs will do it.  There are others.


Even better:  Buy and hold the averages REGULARLY.  That means early and often.  Invest 15% of your income all your life and you'll retire early and well (if you want to).


For those who think they can't do that, yes, you can.  Just live like the people who make 15% less than you do.  That's most of the people in the world, and likely many millions in the U.S.

Dec 4, 2013 1:53PM
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Some good thoughts but it misses the most important Rule #1 -- Educate Yourself.  All of the "advice" in the world won't do any good if you have no clue what it is all about. Majority of the education is free at the public library (well your taxes pay for it if you use it or not) and yes some of it is pretty dull. I had a professor in college who always told us that it is not a matter of you "can't do it", rather it is a matter of you never had the opportunity to learn how, good advice.  
Dec 4, 2013 12:53AM
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Buy good land that has low property taxes, screw the market. 0's and 1's are a dime a dozen, new land takes a long time to create.
Nov 16, 2013 2:39AM
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I have to disagree somewhat with the "Hold on to your investment and ride it out, no matter what happens to the market". With the Bubble markets these days its actually pretty easy to watch when the big swings are coming. Buy low, Let your assets build, When the news starts screaming recession, put all your funds into stable value cash funds. Then buy well preforming funds when it starts to recover. So far this method has worked excellently for myself. 
Nov 18, 2013 10:26AM
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I see the wolves want the sheep to feel safe......... what's new?

Nov 17, 2013 6:23PM
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The person commenting on #8 that dividends come out of the share price of stocks is a lard head.  Dividends come out of the share price of Mutual Funds. I would like to add that spreading money evenly over Vanguards 10 catagories of indexed Mutual Funds & over the 10 indexed ETF sectors is about as good as a person can do for Core Investing. Fun money should go to stocks for growth & income.
Nov 17, 2013 11:49AM
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Buy and hold would be okay if the fund managers actually managed their funds, but most of them just sit on their butts when the market swoons. 

 

 It makes more sense to get involved personally to the level where one has a better understanding of what the market is likely to do. 

 

"Time" the market, but do it in incremental steps.  That's how the professional money managers do it.  You won't gain as much when you're right, but you won't loose the farm when you're wrong (and you will be wrong some of the time).

Dec 4, 2013 11:14AM
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Pretty much all good advice except for 5. Never try to time the market.....agreed you shouldn't be flighty about pulling money in and out fo investments....but No, you cannot invest and sit on the investments. You have to work things...all companies fail, and all currencies fail and god to zero too. You have to use your good sense to pull out and move your money around. Real diversification  is 50/50, 50% in stocks-bonds and 50% in hard assets real estate, gold, silver.

Nov 16, 2013 1:55PM
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Buy and hold works sometimes with non-taxable accounts with good divs..(or deferred)

 

But you're right about portfolios, needing tweaking and due diligence.

Nov 17, 2013 3:08PM
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Phil99.....I guess it would be "unfair" to pick on only Vanguard alone...

I have had no investments in Mutual's for at  least 12-13 years...

Up until that time, we had probably been invested in 15 different Funds..

Ranging from Domestic to Foreign, Sector specific to Balanced, even for a short time G/I or MMs.

The last fund that I vacated was F. Magellan.

Most Fund involvement was during our 401K years...Where choices are very limiting.

But have had Fidelity, Vanguard, T-Rowe and Pimco amongst others...Never owned any ETFs.

 

I was disturbed by what most Fund Managers allowed to happen to Clients, young and old alike, worst of all retirees or soon to be....They lost fortunes with their investments and all, at the wrong time in life..

It took them too long to recover their losses, and has hurt much of the recovery today along with moving away from the Recession sooner...I do believe most Fund managers should have reacted quicker to stave off heavy losses, and recover clients money quicker...Too much bad advice and too much second guessing....Seems "no one" believed it could get that bad..

Nov 17, 2013 7:44AM
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pls invest me o a want to starta busine i am cumar somali to live mogdisshu
Nov 17, 2013 4:01PM
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In reference to #8, finally someone who is telling the truth about dividends. It's not extra money people! I've been telling friends and family for years and nobody would believe me. That dividend that you get comes out of the stock price and you end up with exactly the same amount of money. 
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