The GoldenEgg Investing® Plans
Here’s why GoldenEgg Investing® invests the way it does.
First, we believe everybody investing for retirement should own some stock. Why? Because equities are the engine of growth in any investing plan.
Bonds protect you when the economy is weak, and cash is a good refuge from market turmoil. But neither of them can grow your wealth enough for you to retire comfortably.
From 1926 through 2012, stocks gained 9.8% on average, bonds returned 5.7% and Treasury bills (cash) earned 3.5%–barely keeping up with inflation, which was around 3%.
But stocks have their ups and downs: They’re more than twice as volatile as bonds and five times as volatile as T-bills or money market funds.
Still, over time, the gains are worth the risk—if you stick to your plan and don’t put too many of your Golden Eggs in one basket.
That’s the GoldenEgg Investing® approach—we suggest subscribers keep 40-50% of your money in stock (40% if you’re within 5-8 years of retirement, 50% if you’re 8-15 years away).
Financial planners often recommend that even people close to retirement hold 60-70% in stock—so you won’t run out of money if you live to 95.
But that exposes you to huge market declines of the kind we saw a few years ago. Instead, GoldenEgg Investing® aims to limit market risk, which is a bigger threat to your financial health than outliving your money if you live past 90. (We should be so lucky!)
Here’s what our investing plan looks like. (All of these except the money market fund are exchange traded funds which you can buy in any online brokerage account for free or a small fee. Please check with your broker and see FAQ for more about ETFs).