Invest with simplicity from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Investing with simplicity means keeping your investment strategy straightforward and easy to understand. By avoiding complex investment products and strategies, you can reduce the likelihood of making costly mistakes and improve your chances of long-term success. One of the main reasons to invest with simplicity is to maintain clarity in your financial decision-making. When you have a clear understanding of your investments and how they work, you are better equipped to stay on track and avoid making impulsive decisions based on market fluctuations. Simplicity also leads to coherence in your overall investment approach. By sticking to a simple, well-defined investment plan, you can create a cohesive strategy that aligns with your financial goals and risk tolerance. This coherence provides a sense of structure and purpose to your investing, helping you stay focused on the long term. Logical sequencing is another benefit of investing with simplicity. By keeping your investments straightforward and easy to follow, you can more easily identify the cause-and-effect relationships between different aspects of your portfolio. This logical sequencing allows you to make informed decisions about rebalancing, tax...
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