Rule #3 will be short, because the chapters in Part II will explain in detail why it’s so important to follow this rule. For now, we’ll simply identify some of the noisy opinions and recommendations you’ll hear if you follow the two-asset portfolio route, and to all of it we say, “Tune it out.”
You’ll hear that you can and must beat the market, yet you aren’t trying to beat the market. Tune it out.
You’ll hear that you must diversify among many asset classes and many mutual funds or ETFs, yet you’re only investing in one or two. Tune it out.
You’ll hear that you must rebalance regularly to maintain constant allocations to asset classes, yet you aren’t rebalancing regularly. Tune it out.
You’ll hear that you must use a mathematical ...