“ING Direct tells their customers that to determine how much of their money they should put into high-risk investments versus low-risk ones, just take your age up to 100 years old. However old you are, that is the percentage that you should invest in the low-risk stuff; then take the number 100 and subtract your age from it and invest that percentage in the high-risk stuff.”
I am the world’s worst investor (no, really, I am). Everything I have is earning 3.5% at the Credit Union. So, in other words, I’m 100% invested in extremely liquid, extremely low-risk vehicles. Setting aside my pathological aversion the regular instruments of capitalism, any improvement in my behaviour as an investor requires pithy bits of wisdom like this. They don’t even have to be true.