Investment Goals

The Rule of Seven.

The goal is to have seven years of income set aside in income-producing investments such as bonds and MLPs. If stocks crash, tap these income-producing assets to meet short-term needs.

If you can’t afford to set aside years of income simply start with an achievable goal and keep raising the bar as you progress. For example, you might start with a goal of saving three or six months of income, and then work your way, over many years, toward the ultimate goal of setting aside seven years of income. Never underestimate the power of disciplined saving combined with long-term Compound Interest.

Core & Explore

The core of your portfolio should be invested in Index Funds that simply match the market’s return. But at the margins, it can make sense to explore additional strategies that offer a reasonable chance of outperformance.

Create a list of simple rules that spell out where you’re trying to go as an investor, what you have to watch out for, and how you plan to navigate the journey securely, so that when things get emotional, you stay the course and keep Being Unshakable (in regards to investing).

Share your flight plan with someone you trust. Ideally, a sophisticated financial advisor. He or she can help you stick with the program by making sure you don’t violate your own rules with impulsive survival-brain decisions.


  • Compound Interest
    • Compounding is a force that can catapult you to a life of total financial freedom. If you stay in the market long enough (see: Investment Goals) compounding works its magic, and you end up with a healthy return. Even if your timing was hopelessly unlucky. It isn’t about getting a perfect score. Even small improvements in our behavior can deliver enormous rewards. If your returns improve by, say, 2 or 3 percentage points a year, the cumulative impact over decades is astounding, thanks to the power of compounding.
  • A Customized Approach to Asset Allocation
    • The Rule of Seven. The Investment Goals is to have seven years of income set aside in income-producing investments such as bonds and MLPs. If stocks crash, we can tap these income-producing assets to meet short-term needs.