Merriman

Never ignore your emotions or better judgment in order to chase higher returns. Investors should settle for lower returns in order to reduce their risks. It is better to work longer or save more each year than to retire with too little money. It is also better to have less money to spend in retirement than to suffer losses that put you in danger of running out of money.

An investor's choice of assets if far more important than the times he decides to buy or sell those assets. In a nutshell, the ultimate buy-and-hold strategy is this: Use no-load funds to create a sophisticated asset allocation model with worldwide equity di-versification by adding value stocks, small company stocks and real estate funds to a traditional large-cap growth stock portfolio.