Content last updated December, 2018.
Questions and Answers
What is GoldenEgg Investing®?
GoldenEgg Investing® is a subscription service to help investors find simple, low-cost, low-risk plans to invest for or in retirement.
Who is it for?
Everyone from Millennials to Baby Boomers looking for an understandable, low-cost retirement investing plan that aims to build their wealth over time or retirees looking to preserve and grow their wealth. We think it’s best suited for traditional IRAs and rollover IRAs from employer 401k plans.
How does it work?
GoldenEgg Investing® offers a retirement investing plan with several widely available funds that combine the growth potential of stocks with the lower risk of shorter-term bonds and cash. From time to time, GoldenEgg Investing® will recommend changes in how the funds are invested. Occasionally, dramatic market events may also prompt a “rebalancing” of this kind. Paid subscribers will receive a weekly email from GoldenEgg Investing® about what’s going on in the markets and what it means to you, along with specific suggestions when market conditions warrant it.
Why do you recommend people hold less stock than many other advisers do?
Because, we believe, if you own less stock, your total account won’t go down as much in bad years like 2008-2009. Many financial advisers recommend people put 60-70% of their money into stock even if they’re retired or approaching retirement. GoldenEgg Investing® suggests 40-50%.
Why? The more you lose, the more stocks have to rally to make up lost ground. The less you lose, the more likely you’ll stick with your plan.
But won’t holding less stock mean I have a greater chance of outliving my money?
Not necessarily. Sometimes big stock market losses cause people to pull their money out and they miss the recovery. And if you have a lot in stock when the market drops sharply, it could reduce your standard of living in retirement. We believe our approach gives you a better chance of building wealth by keeping a little less in stock and sticking with it than by jumping in and out of the market at just the wrong time.
Will GoldenEgg Investing® beat the market?
No, and it’s not meant to. Most professional investors don’t beat the market and yet they charge you big fees because they say they can.
When stocks go down, will GoldenEgg Investing®’s investment plans go down, too?
Yes, but probably not as much as other investment plans with more stock, and we think the GoldenEgg plans are more likely to recover their value sooner when stocks rebound.
What kinds of funds do you use?
GoldenEgg Investing® primarily uses exchange-traded funds (ETFs), low-cost funds that track broad market indexes and trade on the exchanges, so that their prices change throughout the day.
Does that make them riskier than regular mutual funds?
We don’t think so, because GoldenEgg Investing® suggests only the most liquid ETFs run by the most reputable companies. But we also have plans specifically for Fidelity,Vanguard, T. Rowe Price, and Charles Schwab mutual fund investors.
What is your Best Ideas plan?
GoldenEgg Investing®’s Best Ideas plan combines broad-based stock and bond ETFs with niche sectors that could offer opportunity and outperformance. The Best Ideas plan may be updated more frequently than the other plans, and subscribers will be alerted to any changes by email. The Best Ideas plan may be most appropriate for slightly more active, risk-tolerant, self-directed investors.
Who manages the investment plan?
You do, using GoldenEgg Investing®’s alerts and recommendations, so you never lose control of your money.
Your plans all have $100,000 in assets. Can I still use them if I don’t have that much?
Absolutely. Given minimum investments in some of the recommended funds, we believe our plans can help you if you have at least $25,000 to invest.
Should I reinvest the funds’ dividends or take them directly?
Dividends are an important part of investing for retirement, so we recommend reinvesting dividends as a way to build retirement wealth over the long run. If you’re a retiree, you might consider taking payment of dividends directly. Please consult your tax and other financial advisors.
Can these plans be used in nonretirement accounts?
Yes, although they are designed primarily for tax-advantaged retirement accounts and thus may not be ideal for people in higher brackets. Please consult your tax adviser.
How much does it cost?
Ever since we stopped updating the site at the end of 2018, the site has been free and open to all.