The reason for saying this is that most investors think that as they approach or are in the early years of retirement they can’t materially change their financial situation because there is not enough time. I say 25% per year but the actual number was 32% per year for the best version of the Stars buy and hold strategy. I also say 25% per year because that is the return of the version in the book “Earn Twice the S&P”.

Stars unlike other buy and hold strategies has about the same returns in rising and corrections if you average the correction year with the two subsequent years. This aspect means Stars future performance is more repeatable than most because it does the same thing over and over. The only thing that reduces Stars performance is a market that does not change much for years on end.

Nobody can call market direction so any time is alright to start using Stars. Your portfolio is at new highs every 2 – 3 years. The lost opportunity cost of not being in Stars is about 20% per year. Stars does not try to pick correction lows in mid year. It rebalances at year end.

The best way to start using Stars is to sell your worst 10% of your portfolio and buy 10% TQQQ. This will raise your portfolio performance about 8 percentage points per year over time because your worst performers are probably about 30% below market.

I know today seems like a horrible time to start with oil being over $100 but there is never the perfect time. However prices are at 6 month lows for many stocks. With Stars you always own very good stocks. Last year Stars outperformed the average performance of Berkshire Hathaway, Blackrock, and Blackstone by 20 percentage points in a year that was very difficult because of the narrow breadth of the market.