Vicki Robin

Investing 101

In Uncategorized on February 3, 2009 at 7:06 PM

Where should I invest my money now? Is this a good time to invest in the stock market with share prices so low? Should I stick with the original strategy Joe Dominguez offered us in Chapter 9 and continue to invest in Treasury Bonds?

As a reminder, Your Money or Your Life was never intended to be an investment guide. For many former as well as new readers, the peace of mind you receive by not putting any of your money at risk once you become FI is worth the price of low, very low interest rates on Treasury Bonds. I have heard from people while out on the book tour that they would rather reduce their spending or be creative in other ways once FI than invest in the stock market.

There is no right way or wrong way to invest once your FI. The investment guidance that I offer in Chapter 9 is just that-guidance. I like taking a little bit of risk with the money I invest in the market. Each person has a different level of risk tolerance and it’s important to discover what your risk tolerance level is as you go about making important financial decisions. But ultimately the decision is yours and yours alone to make. Do your homework, understand the risks and rewards of each decision and move forward confidently.

As you decide where to invest your nest egg, be mindful of Joe’s advice, which is to become knowledgeable and sophisticated about your investments. I’m a big fan of Vanguard and love the low cost index funds they offer. If index funds are something you have heard about but you’re not really sure what they are, please, do not invest in these until you understand what they are, how they perform and what type of risk you are taking. Educate yourself and become informed about your options. Remember, this wonderful book teaches you how to become financially empowered. Learning about investment choices is not the most exciting thing you can read about, yet the investment of life energy in this task will be well worth it.

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  1. What I don’t understand is that Americans so many never plan to fail but fail to plan. Some of my very smart friends I envy read the article once and pass a test with flying colors but I am happy just to pass yet they cannot save a dime making more then I and retire on nothing after making thousands in their life time working partime making ends meet yet I am retired comfortly with only a high school education. I felt low self esteem because I did soo poorly in school yet suceeded in material things spending wisely where my envy friends have nothing and now they envy me. I think sometimes life balances it self between the very intellience and common sence. Frank.

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