Wan, that's a good long term target. You have to assess what kind of investor you are first.

There are plenty of mechanical strategies, even MI screens, that will get you an average 10% over years. But, without some method of downside protection (Bear Catchers), you may see a 10%+ drawdown in any given month, or over 20% over months, on average every few years.

Or, you can invest in ETFs following relative strength methods, including a number with good dividend yields, without the volatility of stock screens or stock picking. But, still need downside protection -
like the Bear Catchers or other intermediate timing signals - when the market goes south there's no place to hide (unless you're a brilliant contrarian / shorter / leverage guy).

A barbell of high growth / high vol funds / stocks (20%) with super safe Treasury funds with less than 7 years maturity on the other end (20-30%) is a good approach as well.

It really depends on how much time you have left to accumulate funds vs spend them (years to retirement), which drives how much drawdown you're willing / able to tolerate.

Mechanical Investing FAQ

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