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FORD MOTOR COMPANY introduced the world to the convertible hard top in 1957 with a car called the Skyliner. It was a marvel of engineering.
To retract, the Skyliner hard top first tilted up and away from the front windshield. Then the top folded in half overhead. The trunk lid opened wide. The folded hard top swung into the trunk, which then closed. All by flipping a single dashboard switch. You can see it in operation in this commercial featuring Lucille Ball and Desi Arnaz.
To make this contraption work, Ford engineers installed seven electric motors, four jack lifts, 10 limit switches, 10 solenoids, four locking mechanisms for the roof, two locking mechanisms for the trunk and 610 feet of wire. It’s hugely complicated—and difficult to repair.
I’ve never been a fan of complicated. This applies to investing as well as cars. My introduction to investing came from opening a savings account at my local bank when I was a kid. With time, I could see how my money grew in value if I just left it alone. Simple.
For years, I invested in either savings accounts or certificates of deposit. It wasn’t until I worked for a company with a 401(k) plan administered by Vanguard Group that I dove into the stock market. I chose a one-stop shopping 60% stock-40% bond balanced fund. I contributed an amount that I felt comfortable losing, should things go badly wrong. I knew I had cash in the bank to cover whatever surprises might arise.
I’m sure many others enjoy deciding when, where and how they’re going to invest next. Yet everything that I’ve read tells me the key isn’t timing the market, but time in the market. Just invest and wait patiently.
I keep in mind the old saying, “A watched pot never boils.” Just forget about it until you need the money. Then look up your balance.
Could I have done better with a more complicated investment approach? Maybe. But who cares? As long as I have money in the bank, I’m good.
I agree. My portfolio is more complicated because my approach was, but if I got a do-over both would be much simpler.