Gyroscopic Investing

My daughter has just graduated from college and I am trying to convince her that she'd better start saving for retirement. I think PRPFX overall might be a good "default" all-in-one option for her IRA account: as she learns more about investing and accumulates more money in her retirement accounts she can start building other positions. Or, if she is not interested in investing she could just DCA into PRPFX. Well, I made her read Bogle's Little Book and she's interested in economics overall, but who knows whether she will be also interested in managing her investments.

Do you think PRPFX would be a good starting point for a young investor? Or would it be too conservative?

foglifter wrote:Do you think PRPFX would be a good starting point for a young investor? Or would it be too conservative?

I think it's fine for a young investor. When I was young and started investing I went down the primrose path of stock heavy allocations, etc. I would have fared far better had I just started with a stable conservative allocation early on and just socked away money without worrying about it. It's easy to think the brass ring can be achieved by shrewd stock investing alone. But this is really a myth. If people are honest about it and really think it through, there are very few investors that made their money from investing alone. This is why Browne was so adamant about using your career to build your wealth and to protect and grow the money you earn in a safe and stable allocation.

Once you save enough and the compounding takes over you can do very well from your investments, but this is rarely because of stock market genius. It's more from a patient and disciplined savings program. IMO.

Ditto craig's comment.

PRPFX is a great one-stop fund.  Wellesley also deserves a mention when talking about a strong one-stop investment, though it is obviously a different approach from the PP strategy.

Thank you for your input, guys.