Those that don’t study history are doomed to repeat the same mistakes made in the past.
How many times have you heard this phrase or something similar?
This is why we study history at Iron Gate Global. If we look at the past it can give us an idea of what may happen in the future.
Take income investing for example. Academia has this notion that the older you get the more income type investments you should own. For example, when you’re 60 years old you should have approximately 60% of your portfolio in bonds.
We couldn’t disagree more with academia.
The amount you should have in classic income type investments (bonds and dividend stocks) depends on your goals and the need to grow your money.
Here’s what history has shown regarding the value of $1.00 over time using different asset allocations.
As you review the returns, ask yourself the question, what type of return do I need to accomplish my financial goals?
If you don’t know what type of allocation you should have, contact us. That’s what we do, help people build a portfolio that allows them to accomplish their goals.
What We’re Reading
Latest memo from Howard Marks: Political Reality – Howard Marks is one of our favorite investors to read and learn from. Any time he comes out with a memo it is required reading for us. It’s similar to the Berkshire Hathaway Annual Report in our eyes. This memo is another classic that gets you thinking. Click here to read the full article.
3 Things All Self-Directed Investors Should Know – This is an instant classic! Once you see the author we are sure you will agree! If you are managing any of your own money these three items are vital for you to understand. Read it here.
11 Common Medicare Mistakes – If you’re in that stage of life where Medicare plays a role, please read this. It’s important for you to understand some of the common mistakes that come from a confusing program. Read the article here.