On Bob Brinker today..

[GFB]

Besides the usual variety of questions from callers..2 items of interest that are favorited topics of Bob's were discussed.

In his opening monologue, Bob talked about what he likes to call "critical mass." It is that amount of money, assets, pensions or whatever a person has to accumulate to get to the point in which they no longer need to work (unless they want to)..and can lead the kind of life they want, in retirement..which is of course, a different number for everyone.

In the 3rd hour, Bob discussed what he calls the 4% rule. This is simply a guideline, (and needs to be thought of like that)..of which people can feel relatively safe living off 4% their own finances in a given year..(provided they are well diversified)..and feel relatively secure in knowing their money will last throughout their retired life.

[planosteve]

While listeners were thinking Bob was hard at work sweating behind the mike to make them money,
Brinkertalk yesterday was a splice job with old calls pasted in.
According to Honey, Bob had a bad year. His best active protfolio only made 8%. He could have made 12% with the Vanguard Total Market fund. In other words he didn't beat the market, it beat him up pretty good.

http://honeysbobbrinkerbeehivebuzz3.blogspot.com/

[GFB]

While listeners were thinking Bob was hard at work sweating behind the mike to make them money,
Brinkertalk yesterday was a splice job with old calls pasted in.
According to Honey, Bob had a bad year. His best active protfolio only made 8%. He could have made 12% with the Vanguard Total Market fund. In other words he didn't beat the market, it beat him up pretty good.

http://honeysbobbrinkerbeehivebuzz3.blogspot.com/

The total market is what I am in, and what he recommends for most investors.

There are people who just can't deal with the idea of index investing..so he does construct several model portfolios.

I do not follow them..but I do know he consistently rates very high from Hulbert with his newsletter.

[planosteve]

Owning a stock or stock fund is a speculation. You are playing the market or paying someone else to play it for you. Same with a bond fund.
Owning a bond or CD or anything with a fixed rate of return is an investment.

[GFB]

Owning a stock or stock fund is a speculation. You are playing the market or paying someone else to play it for you. Same with a bond fund.
Owning a bond or CD or anything with a fixed rate of return is an investment.

Thus is Planosteve's brain on drugs.

[planosteve]

Owning a stock or stock fund is a speculation. You are playing the market or paying someone else to play it for you. Same with a bond fund.
Owning a bond or CD or anything with a fixed rate of return is an investment.

Thus is Planosteve's brain on drugs.

Yes, but they are prescription drugs. And 100% correct.