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Simplicity Is a Virtue

David Gartland

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.

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William Dorner
11 hours ago

I vote for simplicity. At 78 I have seen many changes, and the birth of retirement funds and IRA’s and the like. I learned complicated does not equal higher returns, it just may lower them. I am using overall the Buffett approach, 90% S&P 500 and 10% Treasuries. I modified it to 85% S&P and 15% Cash. The cash is to tide us over when the market decides to go down. I have 10 stocks and index funds mostly S&P. Still working to more simplicity.

Donny Hrubes
2 days ago

Hello King David,
I’m in Denver and there’s a transportation museum displaying one example of the Skyliner. In examination of it, I realized the complexity of adjusting all the limits and the functions of that top. WOW! You ain’t kidding!
I can just think of an owner with a wrench and pliers trying to make it work themselves rather than take it to the dealer, only to really screw it up.

When I was a a telecommunications company, they spun off a side company which went in to the stratosphere for business. This new company would issue stock to its workers and after about a year, I had quite a holding. However, Y2K was looming and I moved the bunch into a fixed income account for protection. Well, after the new year 2000, I was relieved and moved everything back to the stock. Wrong move!

I just froze as the balance fell and fell and I finally moved the amount that was left to my traditional IRA.
I still have the paper confirmation of the money going from Fixed to Stock…with ‘Wrong Move’ written across it. I shuda just left it alone.

A fellow technical worker from my final job said it perfectly:
“When you change something, something changes”

JAY SCATTERGOOD
2 days ago

I never worked for a that had any type of retirement so when I quite working I invested in Vanguard Wellington Fund and never looked back……if the fund goes down 10% I invest more money….I am now 78 with a comfortable nest egg and a very positive cash flow income which include SS and a VA benefit so my Wellington is my Emergency Fund…life is good

mytimetotravel
6 days ago

I entirely agree. I call that approach either benign neglect or creative procrastination, and am very happy with it.

I still own a fund I wouldn’t choose today (Tweedy Browne Global Value) because I don’t want to pay the capital gains taxes. I probably wouldn’t choose Vanguard Wellesley for my new car fund either. Otherwise, I dumped my initial mistakes early on. (The megacorp paid for an annual session with a financial “planner”, who pushed funds with front and/or back end fees and high expenses.)

Scott Dichter
6 days ago

The KISS axiom. When you keep it simple, you avoid pitfalls

Dan Smith
6 days ago

From my participation here, I have come to realize a couple things. Most of us made investment choices early on that we would not make today. The other unifying factor is that we did something regarding saving. The end result is that most us are doing just fine in retirement. 

Jeff Bond
6 days ago
Reply to  Dan Smith

Dan – that’s true. But I also know that my very first 401(k) options (back in the 1980’s) did not include anything like the Vanguard 500 Index Fund. Choices were extremely limited in both scope and capability.

Dan Smith
5 days ago
Reply to  Jeff Bond

Thinking back I do agree with you. My first 401K also lacked such choices, and even lacked an employer match for several years.

Michael1
6 days ago

I agree. My portfolio is more complicated because my approach was, but if I got a do-over both would be much simpler.

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