Complete 5 Investment Packs, one by one every year.invest 50% of my monthly payroll in the BOK.For example, for Pack #1 5 years, for Packs #2 4 years, for Pack #3 3 years, for Pack #4 2 years, and for Packs #5 1 years. THs, nonetheless, are not constant but changes. For example, Age 25 and TH 5 years, are constant for the entire period of analysis. italics are emphases.)īoth Age and TH are “a stock” like “Nominal cash balance”. " (Money Mischief: Episodes in Monetary History Harcourt Brace Jovanovich 1992. Real cash balances…are measured in units of time. Nominal cash balances are measured as dollars at a point in time. The quantity of money is a stock in the sense of a store of goods or inventory, by contrast with a flow. Income is a flow it is measured as dollar per unit of time. This is the core concept of his monetary theory: “Milton Friedman explained the dual meanings of money, using two simple accounting items - a profit-and-loss statement and a balance sheet. Here, you must pay attention to “THs” which are not single but plural. In Investing, Two Key Contributors are 1) Age and 2) Time Horizons. It's clearly hypothetical illustration, but I have to utilize all of my wisdom and experience. The question is how to invest for 5 years. Suppose I am 25 years old now, I work at the Bank of Korea (the Fed's counterpart) second year, and I marry my wife “(not in 1966 but) five years later”. Somehow, I really wish to the clock to turn about sixty years back. The 20 years from 1965 (25 years old) to 1985 (45 years old) were my most Successful years while the following 20 years from 1985 (46 years old) to 2005 (66 years old) were a mix of failure for the first 10 (from 1985 to 1995) and success for the second 10 (from 1995 to 2005). Life Cycles have Success and Failure, as Business Cycles Expansion and Recession, as Market Cycles Boom and Bust. She picked me up even though we were very poor at that time…Her the-only-off date was 22nd, so we married on September 22nd (1966)” (From my comment in “ Money Makes Money?” May 01, 2023) The mother one day visited in our house to see me, after hearing about me at a meeting from my remote relative. My wife said she (before being my wife) helped her every day to check her book. “The great Lady in 1960s, and perhaps in 1950s or further back was the late my mother-in- law. (You may skip italics) The former year I met my wife whom her parents introduced to me. The latter was the year when the CIBCR (Center for International Business Cycle Research) at the Rutgers Business School in Newark, NJ was closed due to financial difficulty. These ages 25 and 45 are very memorable years to me: (“Taper” means 1) “to become progressively smaller toward one end”, 2) “to diminish gradually”, by Merriam-Webster Dictionary.) The Age of 25 to 45 Tapering all retirement assets, the reduction speed of:1) the a-bit-old age (65 – 85) is very gradual, 2) the older age (85 - ?) is considerably fast. The Focusīuilding a solid retirement nest egg, the investment period of: 1) the very young age (25 – 45) investors is less years, 2) the still young age (45 - 65) investors is longer years. When I typed “Six in Conclusion”, as shown in the above quote, I decided to pen this article, combining four pieces: 1) “ investors younger than 65, 2) 3 to 7 years, 3) AP, and 4) PP, and another case of investors older than 65. What about investors older than 65? You may find the answers in my various articles. (From “Backing To The 2009 Origin”, May 20, 2023, the italics are emphases.) (For "AP" and "PP", view "Money Makes Money?")” Because the younger the more room to complete more investment Packs :Ī well-designed group of the Investment Packs (after each Pack Completed its Accumulation Period one by one) Grow All Together Month after Month (as Each Pack Makes its Automatic Gains each Month Independently, through the entire time of the Performance Period ). The younger the less year and the older the more year. “ proper-investment-time horizon for investors younger than 65 is 3 to 7 years.
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