Topic
3 articles tagged “Investing”.
Around 90% of active US large-cap funds have underperformed the S&P 500 over 15 years. The more interesting point is that a 1991 paper proved most of them must, using arithmetic alone — before anyone looked at the data.
Three to six months is the standard answer, and it is the wrong shape of answer. The right size depends on how correlated your income is with the thing that would go wrong — and where you keep it matters as much as how much.
Someone who saves for ten years and stops can finish ahead of someone who saves for thirty years and starts late. Here is the arithmetic behind that, the Rule of 72, and why a 1% fee quietly costs you a quarter of your pot.