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You should only invest in S&P if you’re ignorant of the market. The best way to invest is to pick individual stocks in companies you have carefully evaluated.
by xwdv 5y ago
You should only invest in S&P if you’re ignorant of the market.
The best way to invest is to pick individual stocks in companies you have carefully evaluated.
Also I never said anything about taking out 7% a year.
- rout39574 5y agoThe entire conversation is about using investments to create income, of which substantial portions must be disbursed annually. The original article says that their investments were deployed so that "7% earns me $31.5k per year.".
- xwdv 5y agoSell covered calls on your investments for income and you won’t have to worry about draw downs so much.
- seanhunter 5y agoSelling covered calls is a bet that the market isn't going to go up. In a rising market your equity gets called away so it just gives up much of your upside.
- NovemberWhiskey 5y ago>The best way to invest is to pick individual stocks in companies you have carefully evaluated. Only if you're able to guarantee a priori that you're an outstandingly good stock picker. A substantial majority of retail stock pickers lose out significantly to broad-based index funds.
- _se 5y agoThis is terrible advice.