Boglehead investors (see http://www.forbes.com/2009/11/25/low-cost-index-funds-diversification-personal-finance-meet-the-bogleheads.html) have a clearly defined set of investing criteria that serious 'investors' (as opposed to 'speculators') embrace and stick with:
--Start early (the earlier you start, the better off you'll be, due to the power of compounding)
--Live below your means (that's the real key to financial independence)
--Save and invest wisely (Vanguard is a good place to start--and stay)
--Asset allocation (Set it to properly reflect your "sleep-at-night" risk level)
--Keep costs low (As Jack Bogle is fond of saying "Costs matter.")
--Diversify (Own the market. Indexing is an easy way to make sure you've got this covered.)
--Buy and hold (Markets will go up and they'll go down over your investing lifetime, but it's time in the market that counts, not market timing)
--Rebalance (Rebalance back to your desired asset allocation to control your risk level.)
HECS investing provides investors with the first true real estate investment for Bogleheads:
HECS are ideal for an investor's initial real estate investment early in life and is ideal for the middle aged.
They are worth diminishing your lifestyle for.
They are the optimal 'save to invest' investment.
HECS are the 'good night's sleep' investor's dream, year after year; risk management is rigorous.
There is no less expensive investment available in real estate investing.
HECS investing allows serious long-term investors to include real estate (with its inflation protection &
stable appreciation) in their retirement portfolio without sacrificing liquidity or lifestyle.
A HECS investment is the 'buy & hold' investment with exceptional risk-adjusted returns and
absolute preservation of capital.
A retirement portfolio without real estate has a unique vulnerability to the risk of both inflation and
deflation. HECS investing has a low correlation to to other invesment products and by smoothing out
the impact of both appreciation and depreciation on yield, naturally hedges against long term adverse
economic forces.
Think like a Boglehead? HECS investing fits...
