Investment wisdom begins with the realization that long-term returns are the only ones that matter.
Bob is the world's worst market timer.
What follows is Bob's tale of terrible market timing purchases in the stock market.
Bob began his career in 1970 at age 22. He was a diligent saver and planner. Bob mapped out his entire future savings in advance to plan for retirement. His plan was to save $2,000 a year during the 1970s and bump up that amount by $2,000 each decade until he could retire at age 65 by the end of 2013. See Table 4.1 for Bob's saving schedule.
He started out by saving ...