Ode to Lifecycle Investing

I’ve been posting substantively about my new book,?Lifecycle Investing (for example,?here and?here and?here).? But in a lighter vein, Barry and I have coauthored our very first poem about the advantages of borrowing money to invest for retirement when you are young. With some trepidation, I share the poem with you now:

There once was a young man from Rome
who went out and purchased?our tome.
He learned to invest,
and now can attest
that loans are not just for the home.

This explains why there are not more coauthored poems.

You can learn more about our leveraged lifecycle strategy in these?video FAQs:

Where did the idea come from?

What’s in it for me?

Why do we need this book today?

How much does it cost to buy on margin?

Why stop at a 2-1 ratio?

What’s wrong with dollar cost averaging?

Why is your future savings like a bond?

What’s wrong with target-date funds?

How does Social Security fit into the picture?

I’m over forty years old. What can I do now?


It took two of you to write a limerick? It's only 5 lines after all. Well, at least it rhymes ;)


It is a truth universally acknowledged that most of us young folks with the highest salaries and greatest earning potential are also already saddled with astronomical levels of student loan debt. I'm talking debt well over $100,000.

But in none of your repeated articles about this have you ever discussed how existing student loan debt should factor into the "lifecycle" strategy. Are you suggesting we take on *even more* debt, on top of our staggaring student loans, because for the past 1-5 years we've managed to hold a job that pays very well? Even though we know that we might lose our job tomorrow, and might remain unemployed for years after that? When we know that, regardless of whether our employment luck continues or stalls, we're still obligated to repay our $100,000 in student loans, which is not dischargeable in bankruptcy, and which represents an asset we can never re-sell?

Or does your leverage plan only apply to those whose education was funded by their parents? Or should we start your lifecycle plan only after we've repaid our student loans (some time in our 40's)? I am sincerely asking.



A guy named Ayres wrote a book,
continually urging us to take a look.
Sure enough, he was right:
To keep futures bright,
borrow 'n invest--that the hook.


Those who think a 200% stock allocation is safe because "their job is a bond" might hearken to Carl Sandburg's poetry:

"Stocks are property, yes.
Bonds are property, yes.
Machines land, buildings, are property, yes.
A job is property, No, nix, nah nah."