Originally Posted by
aviatormjc
Can you explain your reasoning?
Because it is a one-size-fits-all square peg in round hole very generic and overly simplistic advice. Also past performance has nothing to do with how an investment instrument will perform in the future, Dave doesn't understand this (or bother to explain it to his listeners).
In short, he is on the right track, but he leaves out a lot of detail which will cause people to not see the returns they should be seeing for the same amount of risk.
Telling people "broad based mutual fund" is silly.
How about this:
no load, not actively managed funds in US large, value, large value, small, small value, int'l large, int'l small stocks, and of course some in bonds and cash. Dave's advice isn't diverse enough.
Also, a bit riskier, is to do real estate / rental properties with loans if you're smart about it the risk is still pretty minimal. You have to be in a financial position to do this but it is possible. Rental debt secured with real estate is pretty low risk, but again, it assumes you know what you're doing and are careful.