The next time you sit down with your adviser or open your investment app, resist the urge to start searching for the “top-rated” funds. Instead, work backwards: Define the goal. Calculate the cost. Determine the timeline. Once you know your Required Rate of Return, investing will be less about gambling and more about engineering. It will be boring, predictable, and effective, and when it comes to your life savings, boring is exactly what you should be shooting for.
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