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Bob Brinker’s idea of financial asset critical mass was reaching a level of financial security where your money is working for you. Included in the tribute is a list of recommended investment books that Mr. Brinker had included in his newsletter and radio show over the years. Those recommended books, including those that I have already read, mirror humble wisdom that I find here every day.
I have a lot of reading to do.
Bob Brinker’s MoneyTalk was on Saturday in the Chicago area. He was very easy to follow and gave, in my opinion, excellent investment advice.
Sure, he wanted you to subscribe to his newsletter. That was probably the main source of his income.
But I don’t ever recall him saying “I don’t want you listening to me if you’re not a subscriber!”
And, by the way, that list of books is exceptional. I’ve read some of them and they contain a lot of wisdom.
I was a regular listener to Marketimer and learned a lot from Bob. My investment approach is very close to his advice, and thanks to him I avoided the sharks.
RIP Bob.
Two observations
1) low cost index investing=Bogle
http://www.investopedia.com/terms/j/john_bogle.asp#:~:text=Bogle%20introduced%20the%20Vanguard%20500,by%20creating%20no-load%20funds.
The second was Random Walk that was published in 1973.
2) TIPS are ok when you have a large portfolio or a big enough pension.
The majority don’t have it.
The truth is that when you have enough you can be in 30-100% stocks. You would do ok with TIPS or BND.
I agree that Mr. Bogle was a selfless visionary that made the world’s and my financial life better.
I would add that while the original A Random Walk was published over five decades ago the current 13th version has a publication date of January 3, 2023. One of the great strengths of this book, in my opinion, has been the updating to account for the changes that have occurred in the last fifty years.
I would further note that the author of A Random Walk, Burton Malkiel, was the last of six writers that wrote in the Praise for My Money Journey section that Jonathan Clements edited and also contributed his Now and Then chapter and his three financial lessons.
In regard to describing the value of TIPS in a portfolio, Mr. Enna says it best, in my opinion, when he wrote in his question and answer section of TIPSwatch – First off, I want to state loudly that TIPS are for preserving wealth, not building wealth.
I recommend reading the full comment at his website.
Thank you for this Bill. I hadn’t heard about Brinker’s death. The two people who started me paying attention to money in the 80’s were Jane Bryant Quinn & Bob Brinker. (Jonathan would come along next!). I forgot about critical mass but fortunately, thanks to these three and much more, we have achieved it.
Speaking of TIPS Watch, as I noted to Jonathan on Sunday, the site relayed the news that the IRS is ending the option of buying paper I bonds with a tax refund. I can say from experience that it was a hassle for buyers. https://tipswatch.com/2024/09/01/treasury-is-ending-paper-i-bonds-as-a-tax-refund/
The paper I bonds funded only with a tax over-payment were a headache for both taxpayers and return preparers when purchasing, converting the paper to electronic format or redemption. I am glad to see that part of the I bond program end.
The current I Bonds 1.3% real rate above inflation still has some use for me, as part of my emergency cash, even with the annual $10K purchase limitation. With our government needing to borrow more in the future to fund the debt having the $10K purchase limit seems counter productive to me. I am not interested in the additional complexity of owning TIPS in a taxable account to own a inflation protected bond.
My understanding is the I bond fixed real rate appears to Mr. Enna to be determined at approximately 65% of the TIPS real rate. With the fed apparently getting ready to cut rates next month I wonder if the current 1.3% fixed real rate available on I bond purchases made through 10/31/24 would be a reasonable decision for an investment in the bond part of a portfolio.
I wonder as well so I hope someone here has done some math and offers us their results.
The TIPS Watch site does extensive math — more than I care to get into — on TIPS and I Bonds, so I’d look there for the answers you need.
Yep. Did it once. That was enough.
Here’s the article that Bill is referring to:
https://tipswatch.com/2024/09/04/remembering-bob-brinker-and-his-life-changing-advice/