Four behavioral tactics, to be practiced in different seasons of your investing lifetime, which will have a decisive effect on the quality of your later life and on your legacies to those you love…

… Indeed, when you take the two basic strategic decisions we’ve already made — be an owner, not a loaner; never get scared out of equities — and add these four tactical “how-to” behaviors, you’ve probably accounted for 90% or more of your total lifetime return. Which particular mutual funds you select may – I say again may — account for the other 10%. But don’t be surprised if it’s even less than that.

The four behavioral tactics are:

— setting goals in dollar-specific, date-specific terms,

— establishing a plan for achieving those goals, assuming a specific rate (or rates) of return,

— investing the same dollar amounts at regular intervals, so as to harness the power of dollar-cost averaging, and

— meeting your retirement income needs via systematic withdrawal from your equity mutual fund portfolio.

— Nick Murray from “Simple Wealth Inevitable Wealth” p. 110