Retired with a plan

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jaxbmw
Posts: 20
Joined: Sat Aug 16, 2008 6:45 am

Retired with a plan

Post by jaxbmw »

I am retired 5 years and started having lunch on a monthly basis with a friend who retired this year. We mainly discuss financial plans and ideas for investing. I have provided him with numerous links such as DIEHARDS but our discussion on Thursday really opened my eyes.

We both have about 5 years of expenses in very safe investments so from a short term perspective we are fine, I think! However while I have a long term investment plan, he is trying to figure out the next good idea. He had been heavily into uranium, then into gold, now is following momentum investing. I made a comment that it sounds like he is going for a home run every time. I said I was a lot more comfortable working to my plan and trying to get a return based upon a risk I could sleep with.

We talked a lot about risk which he didn't seem to understand. Then he asked what should he should buy now. He is a very smart guy and I have tried to give him sufficient types of information to assist his decision making but he does not see it.

Amazed!. I am so grateful that I was able to take the time to understand the value of a broadly diversified plan. Yes I have taken hits on it, but the rebalancing has so far allowed me to recover over time.

Sleeping well at night is important.
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Stickman
Posts: 155
Joined: Sat Sep 08, 2007 3:32 pm
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Post by Stickman »

This friendship is obviously a valuable one to you so may I suggest you find an opportunity to give him a gift. Sounds like he is intelligent, so my suggestion would be any of the books listed as recommended books on this site. An example might be Bogle's Little Book of Common Sense Investing.

You might be saying all the right things to your friend. But people hear when they are ready to hear. One of these authors might just click with your friend. It is difficult to predict which one in advance. Some respond well to charts. Others to simple quick reads. But do stick to the recommended books to avoid some of the garbage that is out there.

Hope this helps. :-)

Edit: if buying this as a gift doesn't feel comfortable, many of them are available from the library. He'll appreciate your selections and good intentions.
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