A lot of the time, simple is best
The Simple Path to Wealth is a new book by JL Collins, who writes the excellent blog of the same name.
It’s clear, easy to read, well-researched, and interesting. He has a fantastic chapter on investment advisors. It’s pretty much the investing for retirement bible.
The only catch is that he is an American writing for Americans, about US products, rules, and situations.
For non-Americans I would still recommend the book. The mental models and examples are all pretty universal, and I would say 70% of the book still applies.
I have added The Simple Path to Wealth to the Resources page as a must-buy for US citizens, and a supplementary book for everyone else.
I also really recommend JL Collins’ blog and website.
Any other books I should be looking at? Take a look at the Resources page and tell me what is missing.
The author admittedly is writing from a US-focused viewpoint.
As much as his advice resonates with the Boglehead philosophy, not recommending DCA might prove to be a major Achilles’ heel.
Just ask anyone who poured a lump sum into the Nikkei 225 back during 1989-1990.
I see your point, but I’m not sure it’s valid.
As long as this hypothetical investor in 1989 had a globally diversified portfolio, they would only have had 10% or so of their stock allocation in Japan 🙂
To say nothing of bonds, property, etc.
So they would have been fine in the long run.
I think DCA is more a psychological tool: my take is if it helps you sleep better do it, if you are being coldly logical about it it’s probably slightly inferior…