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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dan Meleney who wrote (42002)	3/28/2011 12:47:22 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78740

Until about age 50, most people are better off investing most of their disposable time into their work skills/career instead of into investing. That was not true for Buffett and I think it is not going to be true for anyone who is a good investor. If a person is interested in investing and is good at it, they should put their time there as early as possible. Compounding is real and if you have great returns early, compounding is supercharged. On the other hand, if person is not a good investor or they don't like investing, then they should not spend disposable time on investing even if they are over 50. They should find a good fund or investment manager and let them do the work.

To: Dan Meleney who wrote (42002)	3/28/2011 1:40:32 PM
From: Paul Senior	1 Recommendation Respond to of 78740

Yes, that makes good sense to me, also. If people would start out concentrating on their jobs, but saving in 401's with funds and maybe company matches, it's the amazing affect compounding has: From nothing, one day you notice your small ira made more money for the year than what you got as a raise that year. Or maybe at some point you notice that your portfolio for the year increased in value more than a promotion or bonus got you for that year. The ira rewarded you more than your company. A few more years of the same: The contributions to the portfolio have increased -- the person has kept the percentage contribution the same (one hopes at the max); the salary has increased so the dollar contributions have increased; the ira portfolio itself has increased with the compounding effects of stock growth and dividends. ... And now it starts to get interesting... Reading the year-end portfolio statement, one day you realize that the portfolio increased from beginning of year to end of year, more than what your entire salary was for the year. And maybe sometime later, perhaps a few years, you happen to notice in reading your monthly 401 statement, that you made more money in one month in the ira, than you will make from a whole year's salary. ...and if somebody were careful and consistent and maybe somewhat prudent and lived in the right time, we get at least to the point you are making, Dan Meleney, that the 50-60 year old person has a couple of decisions to make. Because the daily changes in the ira portfolio can equal the person's salary! 1)Just stop looking at the daily changes in the ira portfolio, and just get on with working and life, or maybe 2)to really consider if working is worth it because "average market returns will offset what marginal impact they might have gotten from work income." All from just saving, getting average returns from stocks, and compounding it all over several decades.