Burton G. Malkiel still looks pretty good, 60 years after "A Random Walk Down Wall Street." Basically he concludes (at the end of a book that's surprisingly entertaining to read) that you can't beat the market by stock-picking (except by taking on more risk, which means... taking on more risk!). Long before Bogleheads were a thing, this basic truth was already known -- but lost in the noise.
I was reading the part where you're trying to figure out what kind of work to do and thought, the guy's a d*mn good writer, why not do that? I spent my career mostly as a software tech writer, after starting out as a technology journalist. Can't say I enjoyed the work, but it paid decent money, and relatively easy on the vertebrae!
Sounds like a much, much worse version of my day spent sawing up an old rabbit hutch and taking it to the landfill myself instead of paying our waste hauler a few dollars extra to haul it away! That was 35 or so years ago, but I still remember it -- so the idea of sawing up an oil tank and dispos... let's not even go there! Thanks for posting.
I used to read Jonathan's column in the WSJ -- and felt, isn't it great that the august Wall Street Journal, which I thought of as catering to the wealthy, also gave space to the idea that "getting going" was something a lot of readers needed! Now that I'm a couple of years into retirement (which happened somewhat accidentally, but I like it so far), I'm thankful for his practical, steady advice about how to... get going and make a nest egg gradually appear out of nothing. Now that I don't have a paycheck anymore, having a calm, rational approach to investing is even more important -- so let's keep this conversation going!
Ya -- definitely some self-knowledge was needed! Before we even got married, it was clear that we had very different financial personalities -- she's awful at keeping track of anything and tends to be a spender; I'm "so cheap, he squeaks," as she puts it. And that was even before I went back to college and got a degree in accounting! So we had to figure out a system that would work, and quickly settled on, no joint accounts! In the end, it works out about the same, because, I as I note, we do share expenses and own our home jointly. (We also used to live in a community property state, so like it or not, we legally owned the car jointly -- but it was her car, and I knew better than to pretend otherwise). We just don't share bank/investment accounts. We grew up with parents who fought about money and didn't want to do that... so we don't!
He catches huge flak - mostly because he says no one needs a financial advisor - but if you actually do what he recommends, not what the carpers think he recommends, it's pretty sound. He says, "Your retirement nest egg should be in index funds -- this stock-picking is basically just for bling on the side, with a few dollars you can afford to lose." He also says, spend an hour a week doing homework on each of the stocks you currently own. AND be able to explain, to any layman who asks, why you own that stock. Does anyone do that? The rapid-fire segments where he says buy this and sell that, he is not really saying "go click the BUY button right now." He's saying do some homework on the stock, but that he likes (or hates) the sound of it. The showbiz is just showbiz; the substance is really not far away from what any prudent investor would do. But I don't watch him these days, because he's friends with a certain high-up individual who will remain nameless, but you know who I mean.
I know, I know, everyone hates that TV guy who shouts too much; but his simple advice, "No one ever made a dime by panicking," has saved my bacon countless times. In the crash that led to the Great Recession, I resisted the temptation to sell out, and stood pat all the way down and all the way back up. In the 2020 Covid crash, I did lighten a few funds, but basically did the same thing. And in the current Iran imbroglio, I have made sure I've got enough cash to cover my bills for a fairly long period of time -- but that's it. The small investor tends to be emotional and reactive, and that's a hard trait to overcome. That TV guy is "for entertainment purposes only," in that his "buy-buy-buy" and "sell-sell-sell" riffs are not to be taken seriously -- but the overall philosophy is sound.
I had an old motorcycle ('72 BMW) that was in storage in an unheated but well sealed garage for 18 years, at a cost of $110/month. Last fall, I decided it was time to deal with it. So I spent $1800 to have my mechanic haul it to his shop and get it running again. Then, I sold the bike for $1000. I pretty much knew this would happen, but did it anyway, as penance for neglecting a classic machine for so long. The good news is, I found it a good home with an owner who's really interested in BMWs of that era and plans to restore it to stock trim. And has promised to send pictures when it's done!
I'll tell you why "hers and mine and mine and hers" works so well, for a married couple (since 1997, in my case). I've got my money and she's got hers -- and as a result, we don't fight about money! Unlike both sets of parents, who spent their whole lives arguing, my wife and I keep it separate. Sure, we own our home (that is, condo) jointly, and we share expenses -- in a rather haphazard fashion; I pay the taxes and utilities, she pays the condo fee, buys groceries, and the phone bill. But "upstream," there are no joint checking, savings, or investment accounts. Hence, no "we can't afford that," or "why do you always buy what you want but I never get to buy what I want?" To say nothing of "We're overdrawn again, what did you do?" That's what my parents -- and my wife's -- were doing their whole lives, and we wanted to avoid that. So, she's got hers and I've got mine. (We finally got around to having our lawyer do us a will, so whoever dies first, the other gets their assets.) Keeping our money separate isn't a financial decision; it's a relationship one -- and for us, it's worked really well. We always advise our younger friends to follow our example... but they never do!
Comments
Burton G. Malkiel still looks pretty good, 60 years after "A Random Walk Down Wall Street." Basically he concludes (at the end of a book that's surprisingly entertaining to read) that you can't beat the market by stock-picking (except by taking on more risk, which means... taking on more risk!). Long before Bogleheads were a thing, this basic truth was already known -- but lost in the noise.
Post: Wall Street Trap
Link to comment from May 2, 2026
[Comment deleted because I thought better of it.... need more coffee before posting....]
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from April 26, 2026
I was reading the part where you're trying to figure out what kind of work to do and thought, the guy's a d*mn good writer, why not do that? I spent my career mostly as a software tech writer, after starting out as a technology journalist. Can't say I enjoyed the work, but it paid decent money, and relatively easy on the vertebrae!
Post: Around the Obstacles
Link to comment from April 25, 2026
Sounds like a much, much worse version of my day spent sawing up an old rabbit hutch and taking it to the landfill myself instead of paying our waste hauler a few dollars extra to haul it away! That was 35 or so years ago, but I still remember it -- so the idea of sawing up an oil tank and dispos... let's not even go there! Thanks for posting.
Post: Scent of a Cheapskate: Frugality Gone Wrong
Link to comment from April 21, 2026
I used to read Jonathan's column in the WSJ -- and felt, isn't it great that the august Wall Street Journal, which I thought of as catering to the wealthy, also gave space to the idea that "getting going" was something a lot of readers needed! Now that I'm a couple of years into retirement (which happened somewhat accidentally, but I like it so far), I'm thankful for his practical, steady advice about how to... get going and make a nest egg gradually appear out of nothing. Now that I don't have a paycheck anymore, having a calm, rational approach to investing is even more important -- so let's keep this conversation going!
Post: Carrying Humble Dollar Forward
Link to comment from April 18, 2026
Ya -- definitely some self-knowledge was needed! Before we even got married, it was clear that we had very different financial personalities -- she's awful at keeping track of anything and tends to be a spender; I'm "so cheap, he squeaks," as she puts it. And that was even before I went back to college and got a degree in accounting! So we had to figure out a system that would work, and quickly settled on, no joint accounts! In the end, it works out about the same, because, I as I note, we do share expenses and own our home jointly. (We also used to live in a community property state, so like it or not, we legally owned the car jointly -- but it was her car, and I knew better than to pretend otherwise). We just don't share bank/investment accounts. We grew up with parents who fought about money and didn't want to do that... so we don't!
Post: One Good Call?
Link to comment from April 14, 2026
He catches huge flak - mostly because he says no one needs a financial advisor - but if you actually do what he recommends, not what the carpers think he recommends, it's pretty sound. He says, "Your retirement nest egg should be in index funds -- this stock-picking is basically just for bling on the side, with a few dollars you can afford to lose." He also says, spend an hour a week doing homework on each of the stocks you currently own. AND be able to explain, to any layman who asks, why you own that stock. Does anyone do that? The rapid-fire segments where he says buy this and sell that, he is not really saying "go click the BUY button right now." He's saying do some homework on the stock, but that he likes (or hates) the sound of it. The showbiz is just showbiz; the substance is really not far away from what any prudent investor would do. But I don't watch him these days, because he's friends with a certain high-up individual who will remain nameless, but you know who I mean.
Post: One Good Call?
Link to comment from April 14, 2026
I know, I know, everyone hates that TV guy who shouts too much; but his simple advice, "No one ever made a dime by panicking," has saved my bacon countless times. In the crash that led to the Great Recession, I resisted the temptation to sell out, and stood pat all the way down and all the way back up. In the 2020 Covid crash, I did lighten a few funds, but basically did the same thing. And in the current Iran imbroglio, I have made sure I've got enough cash to cover my bills for a fairly long period of time -- but that's it. The small investor tends to be emotional and reactive, and that's a hard trait to overcome. That TV guy is "for entertainment purposes only," in that his "buy-buy-buy" and "sell-sell-sell" riffs are not to be taken seriously -- but the overall philosophy is sound.
Post: One Good Call?
Link to comment from April 14, 2026
I had an old motorcycle ('72 BMW) that was in storage in an unheated but well sealed garage for 18 years, at a cost of $110/month. Last fall, I decided it was time to deal with it. So I spent $1800 to have my mechanic haul it to his shop and get it running again. Then, I sold the bike for $1000. I pretty much knew this would happen, but did it anyway, as penance for neglecting a classic machine for so long. The good news is, I found it a good home with an owner who's really interested in BMWs of that era and plans to restore it to stock trim. And has promised to send pictures when it's done!
Post: Penny Wise, Pound Foolish
Link to comment from April 14, 2026
I'll tell you why "hers and mine and mine and hers" works so well, for a married couple (since 1997, in my case). I've got my money and she's got hers -- and as a result, we don't fight about money! Unlike both sets of parents, who spent their whole lives arguing, my wife and I keep it separate. Sure, we own our home (that is, condo) jointly, and we share expenses -- in a rather haphazard fashion; I pay the taxes and utilities, she pays the condo fee, buys groceries, and the phone bill. But "upstream," there are no joint checking, savings, or investment accounts. Hence, no "we can't afford that," or "why do you always buy what you want but I never get to buy what I want?" To say nothing of "We're overdrawn again, what did you do?" That's what my parents -- and my wife's -- were doing their whole lives, and we wanted to avoid that. So, she's got hers and I've got mine. (We finally got around to having our lawyer do us a will, so whoever dies first, the other gets their assets.) Keeping our money separate isn't a financial decision; it's a relationship one -- and for us, it's worked really well. We always advise our younger friends to follow our example... but they never do!
Post: One Good Call?
Link to comment from April 14, 2026