<ul><li>Human capital outweighs investment capital</li><li>As such, you can take aggressive risks</li><li>But, you are probably too risk-adverse</li><li>It's better to limit stock exposure to 50% until you know how you will react in a crash</li><li>If you can hold on, or even buy more while the market is down, increase your exposure</li><li>The most import thing is to save and invest like your life depends upon it</li></ul>

Beginning Stage Investing

<ul><li>The win condition is to have 20-25 times your annual cash flow needs in assets</li><li>If you win, quickly shift your core investments to low-risk categories</li><li>Delaying Social Security to age 70 can greatly reduce your cash-flow needs later in life</li><li>If it looks like you aren't going to win, reduce your cash flow needs</li></ul>

End Game

<ul><li>The trickiest stage / most dependent on luck</li><li>Transition assets into a passive income stream</li><li>Watch closely for the win condition</li><li>Do not stop saving and investing</li></ul>

Middle-life Investing

<ul><li>Lump-sum: the timing of market peaks and troughs do not matter so long as the general trend is upwards</li><li>Periodic contributions: it is best for the market to sustain heavy losses early in your investments (cheap stocks) and high gains later</li></ul>

Lump sum vs. Periodic Contributions

"The Ages of the Investor: A Critical Look at Life-cycle Investing" is intended to be the first installment in the "Investing for Adults" series. Just as grown-ups do not believe in the Tooth Fairy, the Easter Bunny, or Santa Claus, “Investing adults” know that there is no such creature as the Stock-picking Fairy or the Market-timing Fairy. Further, there is no Risk Fairy who will write you cheap options that will protect your stock holdings against loss. Investing adults are familiar with Gene Fama, Zvi Bodie, Jack Bogle, and Burton Malkiel, and understand that a mean variance optimizer does not blend vegetables. In other words, this series is not for beginners. Future topics will, with luck, include the limits of market efficiency and diversification in increasingly non-segmented global markets.

"The Ages of the Investor: A Critical Look at Life-cycle Investing" is intended to be the first installment in the "Investing for Adults" series. Just as grown-ups do not believe in the Tooth Fairy, the Easter Bunny, or Santa Claus, “Investing adults” know that there is no such creature as the Stock-picking Fairy or the Market-timing Fairy. Further, there is no Risk Fairy who will write you cheap options that will protect your stock holdings against loss. Investing adults are familiar with Gene Fama, Zvi Bodie, Jack Bogle, and Burton Malkiel, and understand that a mean variance optimizer does not blend vegetables. In other words, this series is not for beginners. Future topics will, with luck, include the limits of market efficiency and diversification in increasingly non-segmented global markets.

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Money & Investments

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"The Ages of the Investor: A Critical Look at Life-cycle Investing" is intended to be the first installment in the "Investing for Adults" series. Just as grown-ups do not believe in the Tooth Fairy, the Easter Bunny, or Santa Claus, "Investing adults" know that there is no such creature as the Stock-picking Fairy or the Market-timing Fairy. Further, there is no Risk Fairy who will write you cheap options that will protect your stock holdings against loss. Investing adults are familiar with Gene Fama, Zvi Bodie, Jack Bogle, and Burton Malkiel, and understand that a mean variance optimizer does not blend vegetables. In other words, this series is not for beginners. Future topics will, with luck, include the limits of market efficiency and diversification in increasingly non-segmented global markets.

William J. Bernstein

The Ages of the Investor

"The Ages of the Investor: A Critical Look at Life-cycle Investing" is intended to be the first installment in the "Investing for Adults" series. Just as grown-ups do not believe in the Tooth Fairy, the Easter Bunny, or Santa Claus, “Investing adults” know that there is no such creature as the Stock-picking Fairy or the Market-timing Fairy. Further, there is no Risk Fairy who will write you cheap options that will protect your stock holdings against loss. Investing adults are familiar with Gene Fama, Zvi Bodie, Jack Bogle, and Burton Malkiel, and understand that a mean variance optimizer does not blend vegetables. In other words, this series is not for beginners. Future topics will, with luck, include the limits of market efficiency and diversification in increasingly non-segmented global markets.

Isaiah Nixon's Key Ideas from The Ages of the Investor
by William J. Bernstein

Beginning Stage Investing

End Game

Middle-life Investing

Lump sum vs. Periodic Contributions

Isaiah Nixon's ideas are part of this journey:

Related collections

Discover Key Ideas from Books on Similar Topics

Isaiah Nixon's Key Ideas from The Ages of the Investorby William J. Bernstein

Beginning Stage Investing

End Game

Middle-life Investing

Lump sum vs. Periodic Contributions

Isaiah Nixon's ideas are part of this journey:

Related collections

Discover Key Ideas from Books on Similar Topics

Isaiah Nixon's Key Ideas from The Ages of the Investor
by William J. Bernstein