The Cardinal Principles for Retirement Investing

Today’s post is a guest post from my pal Devin Czech. Devin knows a lot about retirement and look for him on an upcoming podcast were we will discuss the topic more in depth.

A lot of people say that they lost all of their money and were unable to retire with dignity due to the 2008 market crash.

However, I argue that if three simple principles were followed, market crashes would not be that horrible of a thing. In fact, market crashes can actually be used to your advantage as long as you follow these three cardinal principles for retirement investing.

These are not “secrets” or some get-rich-quick schemes. In fact, these three principles are really not all that mysterious. They are actually quite simple and intuitive when you think about them.

These principles will help protect you from market crashes, save a nice nest egg, and live a life free of worry. You do not need to live in fear of retirement or investing! You can have security!

I will go over these principles in basic detail in this blog post. In a near future podcast, we will go further into an explanation.

Three Principles

There are three essential cardinal principles that you need to live by if you want to be able to retire with dignity and NOT be a victim of market crashes:

  1. Systematically investing
  2. Properly diversifying
  3. Do not jump off of the roller coaster

I will dive into each of these things with a little detail.

Systemically investing your money over time is essential. There are three main benefits to doing this. It spreads out your risk over a long period of time, it allows you to automate your investing, and it causes you to automatically “dollar-cost average.”

Properly diversifying your portfolio based on your age will help manage risk. Think about this. I personally have over 90% of my retirement savings invested in stocks. Would I recommend a 60 year old invest that same way? ABSOLUTELY NOT!

The younger you are, the more risk you can take on. Why? Because you have a lot of time to make things up if the market goes south.

The older you are, the less risk you can take on. Why? Because you have a lot less time to make things up if the market goes south.

Do not jump off of the roller coaster! Even children can understand that if you jump off of the roller coaster while it is moving, you’re bound to get hurt!

One of the biggest mistakes individuals make when it comes to their retirement investments is selling off when the market goes down. It makes absolutely no sense to do this! When the market goes down, you’re not supposed to sell off- you’re supposed to buy in! You want to buy in because you are buying additional shares at a discount.

The only time you want to sell is when you retire, or you find a better investment option. However, letting external forces such as market fluctuations guide your decisions is not the way to do it!


In a podcast, Jon White and I will go into a deeper discussion on these three fundamentals. If followed, these three principles will help protect you from market crashes that so many people fall victim to. And the best thing is you do not have to learn some intricate theory or trading system that does not actually work.

These are really just principles to live by and they are very easy to practice. Many people have lived by these principles and have built a sizeable retirement nest egg. These principles are not a secret; they are common sense when you think about it.

Devin Czech is the owner of PayCzech Productions and PayCzech’s Money Blog. Devin’s goal is to teach people the basics of money management and give them the tools to make decisions for themselves. He is also working on writing a curriculum that teaches personal finance in an easy to understand way. In his free time, Devin enjoys working out, hanging out with friends, and spending time with his family. Check out PayCzech’s Money Blog at and check out his videos on YouTube at

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