Truth To Tell
‘The Plan’ will be criticized by Financial Advisors because it violates three tenants of conventional wisdom.
- You must have a diversified portfolio.
- Your equity/fixed income ratio should move towards more fixed income as you approach and reach retirement age.
- You should only withdraw some “safe” percentage each year from your portfolio.
- You should not withdraw principle from your portfolio.
Those Advisors who support the above conventional wisdoms do not understand human nature. The advice they give results in you having to take many more actions than if you followed The Plan.
The advice they give is complex and costly. The Plan is simple, automatic and costs you the least possible you would ever have to pay to participate in the stock market.
The evidence that supports violating conventional wisdom will be presented in the subsequent pages. After reading them, you will feel very comfortable following The Plan, even though many are advising you to mend your ways.