[jdink]

Originally Posted by 742

[IMO—

Step 1: Settle on an asset allocation. Large cap/small cap/International/bonds

Step 2: Buy index funds or exchange traded funds to meet that allocation.

Avoid any foreign investments that involve countries with poor regulatory oversight. That means sticking to places like Europe, Japan, Australia. You might consider something that tracks the EAFE index.

Avoid bond funds with high yields. Stick to simple funds that use quality bonds.

Bears make money, bulls make money. Pigs get slaughtered. So don't chase hot investments.

Let cook. Rebalance once a year.

I have been much more aggressive and active than this, but in retrospect little guys beating the market is a matter of luck. Remember that winners brag, losers keep their mouths shut. So just because that blabbering idiot at the water cooler thinks he is brilliant does not make it so. Odds are that he was lucky. For now.

And I suggest a book called Fooled By Randomness.

+10. good book btw.