Comments on: The 5 Year Stock Market Rule http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 04:50:49 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Mike http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html/comment-page-1#comment-224825 Mike Wed, 19 Mar 2008 14:46:47 +0000 http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html#comment-224825 I agree with Bumbo. If you are set to retire or are retired, you need to put a portion of your funds in equities or you run the risk of running out of money. Also I am saving for another home, not sure when this will happen, but the money I have is deducted from a savings account to a balanced fund. This way it is a little "safer" than just investing 100% in stocks. I agree with Bumbo. If you are set to retire or are retired, you need to put a portion of your funds in equities or you run the risk of running out of money.

Also I am saving for another home, not sure when this will happen, but the money I have is deducted from a savings account to a balanced fund. This way it is a little “safer” than just investing 100% in stocks.

]]> By: Ron@TheWisdomJournal http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html/comment-page-1#comment-211018 Ron@TheWisdomJournal Thu, 24 Jan 2008 15:03:54 +0000 http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html#comment-211018 Hey Phil is here!! Love the book, man! It's helped me make a lot of money! Hey Phil is here!!

Love the book, man! It’s helped me make a lot of money!

]]> By: Bumbo http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html/comment-page-1#comment-210894 Bumbo Wed, 23 Jan 2008 21:00:30 +0000 http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html#comment-210894 In fact, someone with a house-buying fund is in a tighter spot than a nearing retiree, since you'll need all of your money at the time of purchase. The retiree wants the money to last the rest of his lifetime, so can (and should) leave money in equities. In fact, someone with a house-buying fund is in a tighter spot than a nearing retiree, since you’ll need all of your money at the time of purchase. The retiree wants the money to last the rest of his lifetime, so can (and should) leave money in equities.

]]> By: Phil http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html/comment-page-1#comment-210874 Phil Wed, 23 Jan 2008 17:31:01 +0000 http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html#comment-210874 While it is true that one should always look at investing in good companies with a time frame of at least 3 - 5 years, it's always good to remember some other points: - Never buy tickers; always buy companies - Remember that you're not buying the market, per se; you're buying businesses - After investing in a good company, stop watching day-to-day market activity; after all, if you've invested well, you don't have to worry about the overall market (for the purposes of having a good investment) All of this hinges on the Two Golden Rules of Money (was it Warren Buffett or some other financial guru who came up with this?): - Rule Number One: Don't lose money - Rule Number Two: Never forget Rule Number One In a down market in which you're already invested, if pulling out of a stock based on some irrational fear of what the market is going to do causes you to run against Rule Number One, then don't do it (makes decision making all the more easier, no?). I follow a specific stock recommendation service, so it's easy for me to figure out which companies are better for my investing. This way, I stand a better chance of having better investments, regardless of how much time and energy I put into my portfolio. While it is true that one should always look at investing in good companies with a time frame of at least 3 – 5 years, it’s always good to remember some other points:

- Never buy tickers; always buy companies
- Remember that you’re not buying the market, per se; you’re buying businesses
- After investing in a good company, stop watching day-to-day market activity; after all, if you’ve invested well, you don’t have to worry about the overall market (for the purposes of having a good investment)

All of this hinges on the Two Golden Rules of Money (was it Warren Buffett or some other financial guru who came up with this?):

- Rule Number One: Don’t lose money
- Rule Number Two: Never forget Rule Number One

In a down market in which you’re already invested, if pulling out of a stock based on some irrational fear of what the market is going to do causes you to run against Rule Number One, then don’t do it (makes decision making all the more easier, no?).

I follow a specific stock recommendation service, so it’s easy for me to figure out which companies are better for my investing. This way, I stand a better chance of having better investments, regardless of how much time and energy I put into my portfolio.

]]> By: Lily http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html/comment-page-1#comment-210866 Lily Wed, 23 Jan 2008 15:31:07 +0000 http://www.bargaineering.com/articles/the-5-year-stock-market-rule.html#comment-210866 I definitely use this rule. I don't have a hard 5-year rule (what happens if I plan to buy a house in 5 years, 6 months?), but I think about how much I need for short-term goals like paying for business school and how much remains to be invested in taxable accounts. I hear the 5-year rule a lot, but I've also heard that any needs within the next 7 or even 10 years should be saved outside of the stock market. I definitely use this rule. I don’t have a hard 5-year rule (what happens if I plan to buy a house in 5 years, 6 months?), but I think about how much I need for short-term goals like paying for business school and how much remains to be invested in taxable accounts.

I hear the 5-year rule a lot, but I’ve also heard that any needs within the next 7 or even 10 years should be saved outside of the stock market.

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