This past weekend, The Wall Street Journal ran a headline story titled ‘The Retreat of the Amateur Investor,’ highlighting the rapid decline of trading activity among retail investors.
In the article, it was reported that the number of monthly active users of the Robinhood Markets Inc. trading app fell to its “lowest level since the company went public.”
What caught my eye after reading the article was the frequency of which the author interchanged the words “trader” and “investor” throughout the story.
To put it bluntly, trading has nothing to do with investing.
It is gambling.
You and I know that, but according to the Journal article, many younger investors haven’t figured out the difference between gambling and investing.
It is time to offer them an alternative to gambling. It is time to introduce them to the 60/40 Coffeehouse Investor portfolio. Introduced in 1999, this portfolio has served as the cornerstone for countless investors who have invested their way to a secure retirement.
With both the stock and bond market experiencing declines in 2022, many market pundits proclaimed the demise of the 60/40 portfolio.
Vanguard takes a contrary view. Take a moment and read their research, and then share Vanguard’s wisdom with someone in your life who is looking to move beyond gambling and start investing for a lifetime of wealth and happiness.
Secure Your Retirement and Beyond
Retiring in a bear market is not for the faint at heart. If you have generated $1 million or more of investible assets and are close to retirement, let's strategize. Build a financial plan with me that sustains your wealth throughout your life.